FRA approves Vicat’s offer to acquire Sinai Cement

Fatma Salah
2 Min Read

The Financial Regulatory Authority (FRA) agreed to publish the announcement of the purchase offer submitted by Vicat Egypt for Cement Manufacturing to purchase up to 56.063m shares — or 42.12% — supplementing 100% of the shares of Sinai Cement Company at a value of EGP 6.75 per share.

It explained that the offer is an implementation of the final settlement agreement signed between the country and Vicat Egypt on March 21.

The validity period of the offer extends for 10 official working days, starting from the trading session on April 10 until the end of the trading session on April 21, provided that the information memorandum is made available to the broker so holders of the securities can view it.

The offeror will be obligated to purchase all the shares offered for sale in response to the purchase offer in addition to notifying the target company of the offer by announcing the purchase offer and the information memorandum after the authority’s approval to publish the purchase offer announcement.

They will also be obligated to notify the authority of any information or data related to the purchase offer before its announcement or publication unless it was disclosed in the purchase offer or in the information memorandum.

Furthermore, the offeror is obliged to publish an advertisement for a purchase offer within two days from the date of the authority’s approval.

The losses of Sinai Cement Company decreased by 36.8% in 2021, dropping to EGP 354m, compared to a net loss of EGP 560.3m in 2020.

However, the company’s sales increased to EGP 1.44bn in 2021, compared to 2020’s EGP 889.2m.

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