South Valley Cement (SVCE) officially announced a buy back tender offer of a maximum of 70 percent of the company’s outstanding shares, at a 12 percent premium to the amounts paid-in by investors. This translates into a purchase of a total of 21,547,698 shares. SVCE currently owns 540,526 shares, equivalent to 1.76 percent of the company.
SVCE intends to purchase the shares at a price of 5.6 Egyptian pounds ($1.2) per share from shareholders who have paid both first and second share installments, and EP2.8 per share from shareholders who have paid only the first share installment. The company’s bid is valid until 14, January 2002, according to a company release.
The company, whose Initial Public Offering (IPO) took place in mid-1997, closing more than nine times oversubscribed, operates a plant in Kharga, 550 kilometers south-west of Cairo. SVCE has a production capacity of 1.5 million tons of cement annually, directed for the supply of construction needs in the New Valley project. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
