The Egyptian Financial Supervisory Authority (EFSA) approved Alexandria Cement's LE 2.45 billion ($430 million) rights issue on Thursday, a final green light needed to raise capital. The company said in June the one-month rights offer, which closed on June 20, was 99.43 percent subscribed but it needed the EFSA's consent to sell the remaining shares. The rights issue was designed to pave the way for the company's main shareholder, Greek cement maker Titan, to sell a 16 percent stake to the International Finance Corporation (IFC) for €80 million euros ($102 million). Titan has been struggling to cope with a shrinking business and to cut debt. Business in Egypt is expanding and is the firm's only growth market. The company will use the proceeds of the rights issue to buy 95 percent of another Egyptian cement maker, Beni Suef Cement Co, which is also owned by Titan. Alexandria Cement will pay Titan LE 3.13 billion for the stake, which will increase Alexandria's total stake in Beni Suef to 99.998 percent. It will not pay Titan for the Beni Suef shares in cash, but will book it as an outstanding debt to Titan.
