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As our respected business partner, we would like to inform you that the owners of the Iskraemeco, d.d. company signed the agreement for sale of 97.6 percent of the Iskraemeco's ownership share yesterday. Based on negotiations and discussions with all bidders, our majority owners estimated that the Egyptian company from El Sewedy Group, i.e. El Sewedy Cables, represented the best development vision (please find more information about El Sewedy Group in the attachment).
The Iskraemeco company has made a great step this year both in the field of business optimisation and in achieving better business results regarding the previous years. However, for further company growth in compliance with planned strategy, we need a long-term strategic partner who is familiar with our business, and who will provide new capital, and will be in favour of the company growth and expansion.
Our new owner, as all potential buyers, performed two due diligences in our company. In that occasion, we expressed our expectations for further business activities of the company. We got the impression that the representatives from El Sewedy Group understood the specificity of knowledge and development attitude of our company. We therefore expect to have the possibility to fulfil our planned strategy and investment in research and development.
When signing the agreement for purchase, our new strategic owner obliged himself to invest in the development of employees and strengthen our sales networks in international markets. He will keep and develop places of work and the registered office of the company in Kranj.
We believe that our new owner can contribute to the development and growth of our company with his knowledge and experiences, that synergetic effects of the association will make our business more successful, and will enable us to meet the requirements of the market and our partners even better.
We look forward to our further successful cooperation.
Attachment: Basic information about El Sewedy Group
El Sewedy Cables SAE (“El Sewedy”), an Egyptian Joint Stock Company
El Sewedy Cables SAE
El Sewedy Cables SAE is the largest producer of power cables & electrical products in the Middle East, based in Cairo, Egypt, with current total production capacity of 144.6 thousand tons per annum, sales of USD 1.4 billion, as of September 30, 2007.
El Sewedy Cables’ products are distributed through 24 different distribution agents worldwide with exports comprising 60% of its sales into Africa, Europe, the GCC, Levant and Asia.
El Sewedy Group has 18 state of the art production facilities located across the region in Egypt, Saudi Arabia, Sudan, Syria, Ghana, Libya, Al Geria, Yemen and Zambia.
El Sewedy Cables produces copper and aluminum power cables, special cables, as well as the copper rod, plastics, polypropylene and galvanized steel wires that are used as the main raw materials for the production of cables.
El Sewedy Cables’ second production arm, the Electrical Products Division, includes the manufacturing of cables’ electrical accessories such as the modular terminators, cable joints, transformers and substations. In addition to that, El Sewedy Cables provides turnkey projects for its customers internationally by undertaking the power and electrical work on large contracting projects including infrastructure projects, distribution & transmission projects and rural electrification projects; in fact the majority of El Sewedy Cables’ turnkey projects take place outside Egypt.
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