The Egyptian “Nasr City” calls on the Emirati “Al Dar” to review the acquisition offer
For our EGX and companies talks, the Egyptian “Nasr City” calls on the Emirati “Al Dar” to review the acquisition offer. The Sixth of October Development and Investment Company (Sodic), affiliated with the Emirates Real Estate Dar, submitted earlier this month a non-binding offer to acquire 100% of the shares of Madinet Nasr for Housing and Development, in a deal that could amount to 6.18 billion EGP if successful, with an average indicative price of 3.30 EGP. The letter addressed from Nasr City to Al-Dar today shows their intention to accept the deal and exit, but at a higher price, and this is what may happen through direct negotiation between the two administrations. The Egyptian government owns a 15% stake in the Nasr City Company, while the two companies “BEG Investments” own about 20%, and B Investments Holding holds 7.45% of the company’s shares. (Bloomberg Asharq)
- The board of directors of the Abu Dhabi-based Agthia Group has approved the strategic acquisition of a 60% stake in the Egyptian snacks and coffee manufacturer and retailer Auf Group.
The acquisition transaction is subject to fulfilling customary closing conditions and getting relevant regulatory approvals. As per the transaction, the Emirati group will hold a 60% stake in the Egyptian group, while the founders of Auf Group will retain a combined stake of 30% in the group. Moreover, Tanmiya Capital Ventures, an Egypt-based private equity company, will hold onto its share of 10% in Auf Group. Freshfields Bruckhaus Deringer LLP is acting as international legal counsel for the buyer, while Matouk Bassiouny & Hennawy is serving as Egyptian counsel on the transaction. Meanwhile, CI Capital is the financial advisor to Agthia on the deal. This takeover will help Agthia in extending its footprint in Egypt as a key player in the consumer-packaged goods industry, building on its acquisition of the leading processed meat producer Atyab which took place in 2021. (Arab Finance)
- Target for Real Estate Investment, Development, Agricultural Reclamation, and Tourism Development has raised its stake in Lecico Egypt (LCSW) to 4% from 3.5% for a total consideration of 1.712 million EGP.
Target has purchased an additional stake of 0.5%, representing 371,042 shares, in Lecico Egypt at an average price of 4.6 EGP per share. It is worth highlighting that Lecico Egypt recorded a consolidated net profit attributable to the holding company of 29.28 million EGP in Q1 2022, versus a net loss of 16.75 million EGP in Q1 2021. Lecico is an Egypt-based public shareholding company engaged in the manufacture of tiles and sanitary ware products. The company offers its products through three segments: sanitary ware products, ceramic tiles, and brassware. (EGX)
- Marsa Marsa Alam for Tourism Development (MMAT) has sold a piece of land in Marsa Matruh for 3.418 million EGP.
The company noted that the deal’s value will have an impact on the financial statements for the period ending on September 30th. It is worth noting that Marsa Marsa Alam’s net loss after tax rose to 1.847 million EGP in 2021 from 1.381 million EGP in 2020. Marsa Masra Alam, formerly Marsa Alam for Touristic Development (MATD), a member of Kharafi Group, is an Egypt-based company that is engaged in the development and construction of different touristic communities and villages. (Arab Finance)
- Al Ahli for Investment and Development’s (AFDI) standalone net loss after tax grew 35% year-on-year (YoY) to 3.856 million EGP in Q1 2022. The company’s revenue dropped to 833,540 EGP in Q1 2022 from 1.328 million EGP in Q1 2021.
Al Ahly for Investment is an Egypt-based company engaged in the provision of investment services within the Egyptian and regional capital markets. The company offers its services through six segments of non-banking operations; corporate finance, investment banking, research and analysis, capital markets, and asset management. (EGX)
- Faisal Islamic Bank of Egypt (FAIT) has reported a 72.1% year-on-year (YoY) growth in standalone net profit after tax during the first half (H1) of 2022.
The bank recorded a net profit after tax of 1.747 billion EGP in H1 2022, up from 1.015 billion EGP in the year-ago period. Revenues surged 31.9% YoY to 6.892 billion EGP during the period from January 1st to June 30th. Faisal Islamic Bank of Egypt is a financial institution that offers banking and investment services in accordance with Islamic Sharia principles through its head office and 27 branches located across the country. (EGX)
- Moving to our economy, Egypt’s net international reserves (NIR) recorded 33.375 billion USD at the end of June, according to recent data by the Central Bank of Egypt (CBE).
This marks a monthly drop of 2.12 billion USD in June, as the NIR reached 35.495 billion USD at the end of May. It is worth noting that NIR at the CBE fell by 4.38% month-on-month (MoM) in May 2022 from 37.123 billion USD at the end of April. (CBE)
- Kenya has decided to continue exempting Egyptian exports from customs duties for a year, starting from July 1st 2022 until the end of June 2023.
This decision comes after Kenya obtained the approval of the East African Community’s (EAC) Customs Union to extend the exemption of customs duties on imports from Egypt and the Common Market for Eastern and Southern Africa (COMESA) for an additional year. Egypt has been ranked first among the top 28 exporters to Kenya in 2021, acquiring more than 70% of the Kenyan market as compared to its peers. In 2021, trade exchange between Egypt and Kenya increased by 4.7% to 666 million USD, versus 635.8 million USD in 2020, Head of the Egyptian Commercial Service (ECS) Yahya El-Wathik Bellah said. Egyptian exports to the Kenyan market rose by 3.3% year-on-year (YoY) to 465.7 million USD in 2021 from 448.5 million USD, El-Wathik Bellah added. (Arab Finance)
- The Egyptian Cabinet has approved a decision under which the state’s public treasury will afford property taxes for some industrial sectors for three years.
Accordingly, the taxes on real estate will be waived for the small-sized and micro businesses, along with strategic industries contributing to national projects. This move will help in achieving Egypt’s strategic vision to nationalize industries and alleviate the damages that sectors faced as a result of the recent global conditions. Moreover, the cabinet has endorsed a draft law regulating the establishment of six new technological universities as per Law No. 72 of 22019. The universities are namely Six of October Technological University in Giza, Borg El-Arab Technological University in Alexandria, East Port Said Technological University in Port Said, Tiba Technological University in Luxor, New Assiut Technological University in Assiut, and Samannoud Technological University in Gharbia. (Arab Finance)
- The Egyptian Ministry of Petroleum and Mineral Resources is currently implementing investment projects worth 1.5 billion USD to improve energy efficiency at Suez Oil Processing Company and the Dahshour compressor station of the Egyptian Natural Gas Company (GASCO).
This investment aims to reduce energy consumption and cut carbon dioxide emissions, as part of the petroleum and mineral resources sector's goal to raise energy efficiency across petroleum work sites, according to a statement on Monday. The sector has adopted some measures to enhance energy efficiency in 31 petroleum companies, which will result in saving 813 million EGP annually. (Mubasher)
- Remittances of Egyptians working abroad have increased by 7.70% year-on-year (YoY) to around 11.10 billion USD in the first four months (4M) of 2022, compared to nearly 10.30 billion USD.
In April alone, the remittances amounted to 3.10 billion USD, an annual jump of 24.40% from 2.50 billion USD. On a monthly basis, the April remittances value declined by 7.20% from 3.30 billion USD in March 2022. It is worth noting that in fiscal year (FY) 2020/2021, the remittances of Egyptian expatriates totaled 31.40 billion USD, surging by 13.20% from 27.80 billion USD in FY19/20. (Arab Finance)
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