Egypt's Suez Cement approves loan, offers stake in Hilal Cement for sale
The board approved a proposal to obtain a loan from Heidelberg Cement
Image used for illustrative purpose. tubes and chimney of a cement factory.
By Staff Writer, Mubasher
Cairo – The board of directors of Suez Cement decided to offer its 51% stake in Kuwait’s Hilal Cement for sale.
The potential deal will be executed at the fair enterprise value with a relevant earnings before interest, taxes, depreciation, and amortisation (EBITDA) multiple, according to a statement to the Egyptian Exchange (EGX) on Sunday.
In addition, the board also approved a proposal to obtain a loan from HeidelbergCement with a principal amount of $125 million.
The three-year loan, which has an interest rate of 6.5%, will be used to offset the current local overdue payments denominated in the Egyptian pound.
It is worth mentioning that for the full-year 2019, Suez Cement suffered net losses of EGP 1.18 billion, compared to EGP 1.34 billion in the previous year.
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