Egypt Based Cement Company Bids For 47% Equity In Kuwait Based Hilal

Egypt-based Suez Cement on Saturday submitted a binding offer to Boodai Enterprises to purchase a 47 per cent equity interest in Kuwait-based Hilal Cement in a deal that values Hilal Cement at 25 million Kuwaiti dinars ($89 million).

Boodai Enterprise has accepted the Suez offer, which will be carried out in compliance with the Kuwait Stock Exchange regulations governing the sale and purchase of large trading blocks.

Subsequent to this sale, Boodai Enterprises and related companies will remain the second largest shareholder in Hilal Cement. Boodai Enterprises was advised on this transaction by Gulf Merger while Suez Cement was advised by Swicorp.

With about 17 per cent share of the cement consumption market in Kuwait, Hilal Cement is its third largest cement company, operating a terminal for the import of cement. In 2006, Hilal Cement sold 736,000 tones, generating approximately $65 million.

"The cement market in Kuwait is growing rapidly and presents significant opportunities, not only locally, but also regionally. Through Suez Cement, we look forward to the Italcementi Group leading Hilal Cement forward into a stronger local and regional cement company," said Yacoub Al Sharhan, chairman of Hilal Cement.

With sales of $625 million in 2006, Suez Cement is Egypt's largest cement producer. The firm is 55 per cent owned by Italcementi, one of the world's leading cement producers.