Cairo -- (MARKET WIRE) -- October 30, 2006 --
NEWS RELEASE
BESIX Group Announces New Strategic Acquisition
BESIX Group acquires aggregates, ready-mix concrete, asphalt and road
construction business in Europe
Cairo, Egypt - 29 October 2006: Orascom Construction Industries announced that
BESIX Group - 50% owned by OCI - has signed an agreement for a total value less
than US$40 million to acquire two Belgium-based groups, SOCOGETRA and COBELBA,
with operations in road construction works, general contracting and aggregates,
ready-mix concrete production and asphalt spanning Belgium, France, Luxembourg
and Hungary. SOCOGETRA has around 60 years of experience in the road
construction industry and is a producer of aggregates, ready-mix concrete and
asphalt. Overall, SOCOGETRA has an annual production capacity of 1.1 million
tons of aggregates including a 700,000 tons limestone quarry in joint venture
with Lafarge. COBELBA is a reputable general contractor established in 1994 with
operations in Belgium and Luxembourg. Combined, the business will generate
approximately US$ 110 million in consolidated revenue with an EBITDA of US$ 7.5
million during 2006. The acquired companies have no debt on their balance
sheets.
BESIX Group Chief Executive Officer, Johan Beerlandt commented "This acquisition
further strengthens BESIX in its home market. The diversification into road
construction also positions BESIX well to cope with the growing need for
infrastructure in Europe and will allow us to leverage this expertise in select
opportunities in the Middle East and Africa in the future. Moreover, our
investment in aggregates and concrete manufacturing reflects our strong view on
the rising importance of these products in Europe."
OCI Chief Executive Officer Nassef Sawiris commented "the BESIX Group
acquisition affirms OCI's drive into two strategic activities including
infrastructure concessions and construction; and the production of aggregates
and ready-mix. We expect to create synergies between both OCI and BESIX in
aggregates and ready-mix concrete production and distribution."
The transaction is currently being reviewed by the relevant anti-trust
authorities, and as per the transaction agreements, the exact acquisition cost
will be disclosed following regulatory approvals.
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Orascom Construction Industries
Orascom Construction Industries (OCI) is a leading cement producer and
construction contractor active in emerging markets. As a cement producer, we
own and operate cement plants in Egypt, Algeria, Turkey, northern Iraq, Pakistan
and Spain which have a combined annual production capacity of 21 million tons.
Our new investments in Northern Iraq, Turkey, Nigeria, Algeria, and the United
Arab Emirates will increase our annual production capacity to 34 million tons.
As a contractor, we provide engineering procurement and construction services on
industrial, commercial and infrastructure projects for private and public
customers principally in the Middle East, Africa and Central Asia. OCI also
invests in natural gas-based industries and infrastructure concessions.
For additional information on OCI:
www.orascomci.com
Orascom Construction Industries (OCI)
Nile City Towers - South Tower
2005A Corniche El Nil, Cairo, Egypt
Tel: +202 461 1111, Fax: +202 461 9400,
OCI stock symbols: OCIC.CA / ORCI EY / OCICqL / ORSD LI
This information is provided by RNS
The company news service from the London Stock Exchange