Asec Cement sells 2 subsidiaries for $128mn: Qalaa

Qalaa Holding (CCAP) announced  execution of selling Asec Cement entire stake in Asec Menya Cement and Asec Ready-Made Concrete to Misr Cement for 1 billion Egyptian pounds (US$127.7 million).

In a statement sent to EGX Sunday, Qalaa stated that the deal would accelerate implementation of its strategic plans which includes cutting debts of the company and its subsidiaries, increasing its stakes in its subsidiaries, pumping more investments in a number of its subsidiaries, as well as purchase of treasury stocks.

The deal will cut the consolidated debts of Asek Cement by about LE 940 million, due to eliminating Asek Menya’s debts from its consolidated balance sheet, Qalaa added.

Noting that, Qalaa could divest other investments if needed.

Last month, Misr Cement (Qena) has submitted an initial offer to acquire 46.5% of Asec Minya, as well as 55% of Asec Concrete.

It is worth mentioning that, Qalaa Holding with its subsidiary National Development and Trade Company own 70% stake in Asek Cement.