Cairo - Mubasher: Qalaa Holdings announced that its business unit ASEC Cement has signed a sale and purchase agreement for the sale of its holdings in subsidiaries ASEC Minya Cement and ASEC Ready Mix Co. — representing 46.5% and 55%, respectively — to Misr Cement Qena for total consideration of EGP 1 billion.
Qalaa Holdings and its subsidiary National Development and Trading Company (“NDT”) own 70% of ASEC Cement.
ASEC Minya Cement is an Egyptian cement producer located in Upper Egypt which commenced commercial operations in August 2013 with a name plate capacity of 2.0 million tons per annum.
Meanwhile, ASEC Ready Mix is a producer and distributor of ready mix concrete, the company operates 6 batch plants in Upper Egypt with production in FY14 reaching 382 thousand cubic meters.
In addition to the Qalaa sale proceeds, the sale of ASEC Minya & Ready-mix will help accelerate the delivery of Qalaa’s strategy, with a key element being deleveraging at the holding and platform company levels — a total of EGP 940 million in debt will be deconsolidated at the ASEC Cement consolidated level owing to the transaction.
