Lafarge and Titan announced today that their 50/50 joint-venture Lafarge Titan Egyptian Investments Limited (LTEIL) has agreed to buy from Lafarge 100% of the shares of Alexandria Development Limited (ADL). ADL is a financial holding company which owns 88,45% of the shares of Alexandria Portland Cement Company (APCC).
The price paid for the ADL shares corresponds to an average price paid for the 10 614 137 APCC shares owned by ADL of 21.64 Egyptian pounds (4.78 euros) per share, including the APCC shares bought by ADL through a public tender offer on the Cairo Stock Exchange at a price of 30 Egyptian pounds (6.63 euros) per share.
The participation of Lafarge in APCC was obtained by Lafarge through the acquisition of Blue Circle (July 2001). APCC has an annual production capacity of 2 million tons in one plant located in Alexandria.
Lafarge and Titan have been operating together in Egypt since 1999, via LTEIL which owns 95% of Beni Suef Cement Company (BSCC). Located 120 kilometers south of Cairo, the BSCC plant currently has a production capacity of 1.5 million tons. A contract has been signed with FCB to double this capacity.
Lafarge is the world leader in building materials, and employs 83,000 people in 75 countries. The Group holds top-ranking positions in all four of its Divisions: Cement, Aggregates & Concrete, Roofing and Gypsum. Lafarge posted sales of €13.7 billion in 2001.
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Statements made in this press release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions ("Factors") which are difficult to predict. Some of the Factors that could cause actual results to differ materially from those expressed in the forward-looking statements include, but are not limited to: the cyclical nature of the Company's business; national and regional economic conditions in the countries in which the Group does business; currency fluctuations; seasonality of the Company's operations; levels of construction spending in major markets; supply/demand structure of the industry; competition from new or existing competitors; unfavorable weather conditions during peak construction periods; changes in and implementation of environmental and other governmental regulations; our ability to successfully identify, complete and efficiently integrate acquisitions; our ability to successfully penetrate new markets; and other Factors disclosed in the Company's Reference Document COB number R01-049 and on Form 20-F filed with the Securities and Exchange Commission in the USA. In general, the Company is subject to the risks and uncertainties of the construction industry and of doing business throughout the world. The forward-looking statements are made as of this date and the Company undertakes no obligation to update them, whether as a result of new information, future events or otherwise.