The Algerian Government Is Negotiating with Egypt S ASEC Cement

The Algerian government is negotiating with Egypt s ASEC Cement to acquire a minority stake in its Algeria-based operations, the firm s main stakeholder told the stock exchange on Wednesday. Algeria aims to acquire 49 per cent of ASEC Cement Algeria by increasing the company s paid up capital, which currently sits at $60 million. Cairo-based private equity firm, Citadel Capital, has a 48.5 per cent share in ASEC Holding, which in turn owns 61 per cent in ASEC Cement, according to Citadel s website. Citadel directly owns 33.44 per cent of ASEC Cement. If the deal is completed, ASEC Cement would own 51 per cent of ASEC Algeria. It currently holds a 72 per cent share. The negotiations between the government and ASEC Algeria come as the latter announced plans to establish of a new cement plant, producing 3.5 million annual tonnes, near the northern Algerian city of Djelfa. Its plans were stalled, however, after Algerian banks were reluctant to provide funding, according to a note from Egyptian investment firm, Beltone Financial. "The [Algerian] government wanted to bargain a stake [in the new plant], " Beltone said. In 2008, ASEC Cement entered the Algerian cement market via a partnership with the Algerian government, with the company buying a 35 per cent stake and management control at Zahana cement plant in the west of the country. Source: uaecement