Construction group CRH plans to build a majority stake in Egypt's Misr Beni Suef Cement group eventually, one of the Egyptian company's directors claimed yesterday.
However, Mr Mohamed Shabaka acknowledged that CRH was currently seeking only up to 34 per cent.
Rumours of the Irish group's intentions towards the Egyptian group have sent Misr's shares both up and down in recent months. During one particular trading session last week, albeit on a bad day for cement stocks, Misr Beni Suef Cement shares were particularly hit, as investors worried about its deal to sell a stake to CRH.
That day the stock lost 4.9 per cent.
"CRH intends to buy more in the future in order to build up a majority stake in the company," Mr Shabaka said yesterday.
In June Misr Beni Suef said CRH had offered to buy all of the company. At the time CRH said it was seeking to acquire 77-100 per cent of the Egyptian company and had bid €178 million.
The bid, however, came with a number of conditions.
In September shares in Misr rose on the Cairo stock exchange as rumours circulated that CRH was increasing its bid to secure the acquisition.
Last month it emerged that CRH had reduced the shareholding it intended to buy.
A CRH spokesman refused to comment at the time. CRH normally takes a smaller stake in companies in emerging markets.
The group's intentions towards Misr are expected to become clearer next month.
Mr Shabaka said yesterday that negotiations over the stake sale had been temporarily delayed by a management change at Bank Misr, a state-owned Egyptian bank which holds 20 per cent of Misr Beni Suef's shares.
The Egyptian company is 60 per cent owned by its founders, with the remainder of its shares quoted on the Egyptian stock exchange.
- (Additional reporting Reuters)
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