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MAM to invest EGP 100mn in El Canal Sugar project

Wednesday 25 July 2018 12:12 PM


By Sherif Omar:
Egypt’s Misr Asset Management (MAM) is planning to pump investments of EGP 100mn, through its arm Misr Investment and Financing Fund, in Al Ghurair sugar factory project, which is being implemented by El Canal Sugar Co. over an area of 180,000 feddans in Minya province.
Sources told Al Mal newspaper that MAM has completed relevant feasibility studies and has obtained the approvals of investing committees at the company to contribute to the shareholding structure of El Canal sugar project.
The sources added that MAM has reached an agreement with Al-Ahly Capital Holding Co., as the financial advisor to the intended project, to join the shareholding structure against paying EGP 100mn, representing a small fraction of capital, noting that there are ongoing negotiations on some terms of contribution including protecting the rights of minority shareholders and taking part in decision making.
Upon agreeing on terms, contribution value will expectedly be paid within one month, according to the sources.
The total cost of Al Ghurair sugar factory project is estimated at USD 1bn, the sources said, adding that it has been agreed that major shareholders provide financing of USD 300mn and the same amount to be provided by new shareholders like MAM. The USD 400mn remaining amount will be secured through banking loans.