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Pilkington submits bid for Egyptian Glass Company

UK glassmaker Pilkington has submitted a bid valued at GBP 141.8 million for 90% of the shares in Egyptian Glass Company (EGC), which produces plate glass using float technology licensed by the Britis…

UK glassmaker Pilkington has submitted a bid valued at GBP 141.8 million for 90% of the shares in Egyptian Glass Company (EGC), which produces plate glass using float technology licensed by the British company. Pilkington, which has tabled its bid via its Netherlands subsidiary, says it envisages developing EGC and expanding its export potential. The bid was approved by the Capital Market Authority on 18 October. Pilkington, which already owns a 10% stake in EGC and has board representation, is proposing to buy 1.35 million shares at GBP 105 each. The company“s shares were trading at about GBP 55 before the announcement of the Pilkington bid. The UK company is being advised by Cairo-based International Development Consultants (IDC). The EGC plant, in 10 Ramadan City, started production at the end of 1998. Built by Italy“s International Glass Engineering (Inglen) for US$ 110 million, it produces 100,000 tons a year of clear and coloured glass for the building and automotive industries. EGC chairman Mohamed Abdel-Wahab says EGC has succeeded in satisfying local demand for plate glass, and is interested in pursuing exports. “I hope the Pilkington takeover will make the plans to expand for the purpose of gaining export markets much more feasible,” he said. IDC managing director Farouk Nasser said he understands that Pilkington sees EGC as a potential hub for regional exports. Pilkington officials said they could not make any comment further to what was stated in the bid announcement. “Pilkington declares that it is committed to developing EGC by improving all aspects of performance, including increasing production and quality, expanding export potential and training its employees,” the company stated.

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