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[August 2008]
Lecico Egypt Reports Share Buy Back Completed
Lecico Egypt SAE (Alexandria, Egypt) has announced the completion of its acquisition of 3,157,895 shares (7.9% of outstanding shares) from the Sanitec Group. This acquisition was approved by Lecico’s shareholders in an Ordinary General Meeting (OGM) on 5 August 2008.Lecico bought the shares at a price of LE 34.775 per share (equivalent to US$6.5 per share). The payment for these shares will be done in instalments over the coming four years, with a portion of the payment as a function of pieces to be outsourced by Sanitec from Lecico.
Lecico intends to distribute these shares to all shareholders as bonus shares as part of the profit distribution proposal which will be put to the shareholders for approval at their Annual General Meeting which will be convened to approve the accounts for the financial year ending 31 December 2008.
Commenting on the acquisition, Gilbert Gargour, Lecico Egypt Chairman and CEO, said: “I am very pleased to complete the acquisition of Sanitec shares under these terms. Although it is sad to lose Sanitec as a shareholder after all these years, this acquisition secures Lecico’s sourcing relationship with Sanitec for years to come and allows us to continue and develop our commercial partnership.
“The proposed distribution of these shares to our shareholders in the second quarter of 2009 will also allow us to equitably and cost effectively reward all our shareholders. Upon distribution, each shareholder of record will be granted bonus shares equal to 8.5 % of their existing shareholding and as such increase the proportionate shareholding of each shareholder. I also hope that this redistribution of shares into the free float will continue to improve overall liquidity in our shares.”
www.lecico.com
ENDS