Beirut (APD) - Cairo-based Savola Sime Egypt, a subsidiary of the Saudi food conglomerate, Savola Group, acquired 70% in Alexandria-based plastics manufacturing firm, New Marina Plast, Al Riyadh daily reported Monday.
"We have completed an acquisition deal on 70% of New Marina Plast's shares whereby the company is valued at LE 90 million ($15.5 million)," said Abdel Raouf Mohammed Manaa, managing director of Savola Group and Savola Sime Egypt.
In the coming days, the management of New Marina will be transferred to Savola, Manaa added.
He noted that the acquisition came as part of an expansion strategy by which Savola Sime, a specialized producer of edible oils and packaging materials, aims to increase its stake in the plastics sector. The takeover would allow Savola Sime to benefit from the market positions which New Marina Plast already holds in export markets in the Middle East and Europe.
Established in 1977, New Marina Plast is a private company that specializes in plastic injection molding.
In line with a decision taken at the beginning of 2006, the shares of Savola Sime were de-listed on March 23 on the Cairo and Alexandria Stock Exchanges and began trading on the OTC market. The shareholders also decided to change the company's name to Afia International Company. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
