The offer submitted by Vicat proposes a capital increase of £E 100 million ($18 million) - raising the company's capital to £E 350 million ($61 million) - in addition to a £E 40 million ($7 million) premium.

Located in the northern part of the Sinai peninsula, Sinai Cement's 1.4 million-tonne-a-year (t/y) facility began production in early 2001. The company continues to record strong profit growth, despite declining domestic demand for cement and the start-up of new capacity over the past year.

Export sales have bolstered the income of many smaller Egyptian producers like Sinai Cement, which exported some 196,000 tonnes of cement last year. Despite the downturn in the local construction industry, there is still considerable interest from foreign investors in the cement market. In early March, CRHof Ireland reconfirmed its offer to acquire a 34 per cent stake in Misr Beni Suef Cement Company(MEED 7:3:02).