A French group offers L.E. 150 million investments in Egypt
Egypt-France, Business, 3/31/2003

In an important step reflecting the investment abilities of the Egyptian market in luring capital in spite of the current war that highly affecting the world investments movement, one of the international French companies offered I.E. 150 million, I00 of which For increasing the capital of Sinai Cement Company and 50 million for the capital reserve.

This came after the extraordinary general assembly agreed upon the company's offer which includes issuing 10 million shares with the par value of L.E. 10 with bonus issuing of L.E. 5 along with allocating the whole increase for the investment expansion and the capital increase provided that the old shareholders shall give up the priority rights during the first increase .

The shareholding of the French group will present about 28.57 percent of the whole capital.

"The new investment influxes of the world French group mirror the abilities of many industrial and investment sectors in the Egyptian market in spite of the circumstances the region is undergoing," Hassan Rateb, chairman of Sinai investors association and chairman of the company said.

He also indicated that the cement industry had gone under exceptional circumstances due to the strong decrease in cement prices; consequently, there was dire need for injecting money influxes by looking for strategic investors who can handle the imbalance of the financial structures.

He added that the offer of the French group also reflects the good fiscal position of Sinai Cement Company that paid back all the installments of the loans and their interests in time last year which amount to L.E 92.5 for the interest of Cairo Bank.

Hassan Rateb clarified that the general assembly refused three offers presented by Consortium to the Egyptain Cement Company, the second by the Palestinian Company for Commercial Services and third one offered raising the share value to L.E 17.

Rateb asserted that this increase in the capital will result in positive exporting abilities besides increasing the work force scale along with capitalizing on the French group expertise in cement industry as it administers 11 cement factories worldwide.

Meanwhile, The French group for cement industry will be serviceable to the Egyptian cement industry through its exporting and marketing abilities in the world market.

It worth mentioning that its annual sales volume amounts to 1.5 billion Euro .

The chairman of Sinai investors association indicated that the total Arab and foreign shares in Sinai Cement after the capital increase will not exceed 43 percent.

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  French Accor company plans to run 40 hotels in Egypt   (8/12/1999)
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