A consortium of private equity firms Affirma Capital and StonePine have acquired a “significant minority stake” in local pharma and nutraceutical player Nerhadou International in a 20 million USD transaction

Newsletter

25 Jan 2023

A consortium of private equity firms Affirma Capital and StonePine have acquired a “significant minority stake” in local pharma and nutraceutical player Nerhadou International in a 20 million USD transaction

A consortium of private equity firms Affirma Capital and StonePine have acquired a “significant minority stake” in local pharma and nutraceutical player Nerhadou International in a 20 million USD transaction. Affirma Capital and StonePine Capital Partners are committed to backing regional champions with strong management teams and founders and continue to actively seek suitable investment opportunities in Egypt and the broader MENA region and have already opened an office in Cairo and hired a local investment team. (Mubasher)

Egypt to offer 30% stake in 7 state-run hotels to GCC funds within 2 months
The Sovereign Fund of Egypt (TSFE) is set to offer a 30% stake in the holding company owning seven hotels for Gulf funds and investors in the first quarter (Q1) of this year. The hotels are Cairo Marriott Hotel, Sofitel Legend Old Cataract in Aswan, Marriott Mena House, Sofitel Winter Palace Luxor, Steigenberger Cecil Alexandria, Mövenpick Aswan, and “Elephantine” Aswan, according to the sources. The TSFE is undergoing the final stage of the pre-IPO evaluation, noting that Saudi Public Investment Fund (PIF) is among the GCC investors interested in the offering. (Bloomberg Asharq)
Misr Ins. Holding is in talks to acquire a 20% stake in third-party claims management outfit Misr Healthcare Network held by the UAE’s Global Capital Investments
The acquisition will make Misr Ins. Holding the sole shareholder in Misr Healthcare. Misr Ins. Holding subsidiaries Misr Ins. and Misr Life Ins. acquired American Global Benefit Group’s 40% stake in Misr Healthcare last summer for 5 million EGGP, the sources said. The acquisition pushed Misr Ins.’ stake in the company from 40% to 80%. Recent exchange rate volatility triggered by the central bank’s move towards flexibility against the USD has made it difficult to wrap up the transaction. (Al Mal)
Dubai billionaire Al Habtoor eyes 3 billion USD property investment in Central Europe
Al Habtoor, whose group owns hotels, as well as car dealerships, residential properties, and schools, said his businesses have been booming after Dubai’s handling of the coronavirus pandemic. The city has become an attractive place for investors looking for a place to park their wealth. Al Habtoor revealed that the group has postponed plans for the initial public offering for several years. (Zawya)
Suez Canal sees 352 vessels passing with 6.5M net tonnage in December 2022
The West Port Said port received 36 container ships with a capacity of 277,720 tons. The port also received 10 general cargo ships, 10 liquid bulk ships, and two roll-on/roll-off (RORO) ships, among others. Meanwhile, East Port Said Port witnessed 113 container ships, 9 clinker ships, 9 salt ships, and 3 cement ships, with a capacity of 3.85 million tons. (Arab Finance)
El-Sisi ratifies laws to build, develop two container terminals
President Abdel Fattah ratified Law No. 1 of 2023 granting a commitment to build and develop the superstructure, use, manage, operate, maintain, and re-deliver a container terminal in Ain Sokhna port to the under-construction firm of Red Sea Container Terminals Company. Red Sea Container Terminals Company and Dekheila Container Terminals Company are Egyptian joint stock companies established as per the free zones system. (Hapi Journal)
Egypt mulls new law to regulate social media platforms' access to users
The Egyptian Supreme Council for Media Regulation (SCMR) is devising legislation that requires social media platforms to obtain a license to access mobile phone users in Egypt. The new legislation aims to protect citizens, particularly children, from any dangerous ideas promoted by these platforms. Several senators have called for controls on social media platforms, especially Tiktok, over concerns that they spread violence, extremism, and homosexuality. (Ahram Online)
Egypt’s high-emissions industries are laying the groundwork ahead of the EU’s carbon tariff
The EU in December agreed to impose a first-of-its-kind carbon tariff on imports of iron and steel, cement, aluminum, fertilizers, hydrogen and electricity as part of a wider decarbonization strategy. The tariff will impact several Egyptian industries that export heavily to the EU if companies don’t act to decarbonize their products. The EU will take a decision about whether to include polymers and organic chemicals in the mechanism when it launches in 2026. (World Bank)
The EU is a key trading partner for Egypt and is the biggest overseas customer for the local fertilizer and metal industries
In 2021, 60% of Egypt's fertilizer exports headed across the Mediterranean, volumes which according to the Chemical and Fertilizers Export Council tripled y-o-y in the first 10 months of 2022 on the back of EU sanctions on Russia. Similarly, two-thirds of Egypt’s aluminum exports and more than 60% of its overseas sales of iron and steel went to Europe last year. (World Bank)
The fertilizer and chemical industries could lose 4% of export revenues due to the EU’s climate policies
Including the CBAM. Meanwhile, revenues from Egypt-Europe electricity transmission expected to start later this decade will be 8.3% lower and oil exports will suffer a 4.3% loss. The EU is aiming by 2030 to include all goods covered by the EU Emissions Trading System, which include crude oil and petroleum products, inorganic basic chemicals, industrial gases, synthetic rubber and non-ferrous metals. (World Bank)
Egypt, Nigeria to boost joint cooperation in electricity sector
The Egyptian Minister of Electricity Mohamed Shaker and his Nigerian counterpart Abubakar D.Aliyu signed a memorandum of understating (MoU) to enhance bilateral cooperation in the field of electricity and renewable energy. Through the MoU, the two countries will provide technical support for the electricity generation sector and the development of electricity transmission and distribution networks, and the transition to smart grid systems. This is in addition to promoting new and renewable energy systems in the electricity sector. (Hapi Journal)
UAE-based Al Habtoor Group targets 3 billion USD investment in real estate sector
To raise its hotel capacity amid expectations of an increase in tourist arrivals. The company is aiming to increase the number of rooms by 13% to 17k, Chairman Hamed El Chiaty reportedly said. Around 60% of the investment will be self-financed and the remainder will be funded via bank loans. Travco Group currently owns 58 hotels and resorts across the country as well as 22 Nile cruise ships, according to its website. It is the local agent for Germany's TUI Group. (Bloomberg Asharq)
Arab Drug logs 108% increase in 6 months
Arab Drug Company (ADCI) reported a 108% year-on-year (YoY) increase in net profit for the first half (H1) of fiscal year (FY) 2022/2023. The company has achieved a net profit after tax of EGP 53.197 million in the six-month period ended December 31st, compared to EGP 49.467 million in H1 FY 2021/2022. (EGX)