assignments

Assignment MCS Privateizations

PREVIOUS ASSIGNMENTS

A selection of our major privatization assignments:

Al-Ahram Beverages Company (ABC)

The privatization of ABC is considered to be the most successful model of the privatization program in Egypt. BDO Khaled & Co. was engaged by a US limited liability company, the Luxor group, with a team of international financial advisors, led by HSBC investment Banking, to prepare and promote an offering of 5,647,000 Global Depository Receipts (GDRs) representing 2,823,500 ABC shares in a transaction of US$ 87.5 million.
ABC was a fully state-owned company and the sole producer of beer in Egypt for over 100 years, with a turnover of L.E. 141 million in 1996. Our involvement in this transaction was well recognized and appreciated by the international mutual funds and underwriters.

Misr America International Bank (MAIB)

We were engaged by the French Credit Agricole Indosuez Bank to conduct a full due diligence and business valuation for the proposed acquisition of a majority stake in MAIB. A presentation of the outcome of the due diligence and results of valuation was made to the client's management in Paris which was well received and appreciated.

El Wadi for Exporting Agricultural Products

In 1998, we were engaged by an Egyptian business group to carry out a full due diligence on the proposed acquisition of a majority stake in the El Wadi for Exporting Agricultural Products. El Wadi was a fully state-owned company and the main exporter of citrus produce in Egypt. The challenge in this task was the fact that the government holding company had inter-mingled the property of its subsidiaries, thereby complicating the process of separation. We reviewed the separation of the property and the valuation made by the holding company for said property.

Gianaclis Beverage Company (GBC)

In 1998, we were engaged by Al Ahram Beverage Company (ABC) to carry out a full due diligence on the proposed acquisition of 100% of the share capital of the above state-owned company. GBC had been the sole producer of white and red wine in Egypt for over 50 years.

The deal was worth L.E. 55 million. Before 1998, GBC was a segment of the Egyptian Vineyards company, which never maintained separate books of accounts for that segment. It was decided by the governmental holding company to separate this segment in a separate company and offer its shares to an anchor investor. We reviewed the separation of accounts and property. On the closing date, we attended the stock take of the company's property and inventories, on behalf of the buying investor.

Egyptian Gypsum Company (EGC)

We have been engaged by a British company to carry out a full due diligence on the proposed acquisition of majority stake in EGC. EGC was previously a profitable business segment of another state-owned company, before the government holding company decided to create it in 1999, and offer its shares to an anchor investor. We have reviewed the separation of the company's accounts from the old company, which never maintained separate books of accounts for that segment. The turnover of EGC for the year ending June 30 1999 amounted to L.E.50 million. We were also asked to develop a new plan for restructuring the finance and accounting departments at EGC, including developing a new International Accounting Standards-based system.

Other Participation

We were engaged to carry out full due diligence on the proposed acquisition of the majority stake in two state-owned cement companies (Beni Suafe Cement and Assuiate Cement) by the British Blue Circle cement company and an Egyptian business group.