UK-based Standard Chartered Plc plans to focus on its operations in Egypt and Saudi Arabia the largest and fast-growing markets in the Middle East and Africa region region
For our top talks today, first, UK-based Standard Chartered Plc plans to focus on its operations in Egypt and Saudi Arabia, the largest and fast-growing markets in the Middle East and Africa region (MEA) region, by exiting from seven countries in the region. Accordingly, the group will no longer operate in Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone, and Zimbabwe. It will also cancel its consumer, private, and business banking businesses in Tanzania and the Ivory Coast to focus only on corporate, commercial, and institutional naming in the two countries. These decisions are subject to regulatory approval. The markets Standard Chartered intends to exit accounted for 1% of its total income in 2021. The multinational company recently inaugurated its first branch in Saudi Arabia and obtained preliminary approval for a banking licence in Egypt. (Bloomberg)
- Second, First Abu Dhabi Bank PJSC withdrew its billion-dollar bid for investment bank EFG-Hermes after facing lengthy regulatory delays in Egypt, people familiar with the matter said.
Egypt’s regulator was slow and imposed new demands on FAB, the people said, declining to be identified as the matter is private. The United Arab Emirates-based lender would have been unable to complete the deal within a planned timeframe, they said. EFG-Hermes slumped 20% to 15.46 Egyptian pounds in Cairo trading, after having closed above FAB’s 19-pound per share offer on Wednesday. The February bid valued the investment bank at 1.2 billion USD in what would have been FAB’s biggest deal in Egypt. For its part, FAB blamed market volatility amid Russia’s invasion of Ukraine as the reason for pulling out. Shares of the UAE lender fell as much as 2.3% on Thursday. “After careful consideration and in the context of ongoing global market uncertainty and volatile macro-economic conditions, First Abu Dhabi Bank has decided to withdraw its non-binding offer,” the lender said in a statement on Thursday. “Egypt remains a strategically important market for FAB.” (Bloomberg)
- GB Auto’s (AUTO) board of directors has approved the participation in the establishment of a company in Kenya and a joint-stock company in Egypt under the name of GB Automotive for Car Trade and Manufacturing.
The board also approved reducing the company’s shares to 1.086 billion from 1.094 billion through writing off 8.51 million treasury shares. It is worth noting that GB Auto recorded a consolidated net profit attributable to the parent company of 1.47 billion EGP in 2021. (EGX)
- A consortium comprises Banque Misr, Misr Insurance, Misr Life Insurance, and National Investment Bank (NIB) has sold all their stake in International Company for Leasing’s (Incolease) (ICLE) for a price of 41 EGP per share.
The consortium owned 7.73 million shares in Incolease. Incolease is an Egypt-based company engaged in the provision of customer service and personalized financial solutions. The company leases a range of assets, including commercial vehicles, machinery, information technology equipment, production lines, real estate, and other tangible and intangible long-term assets. (EGX)
- The Egyptian Natural Gas Holding Company (EGAS) has signed an agreement with Italy’s Eni for cooperation in the gas production and export field.
This partnership will enable the exportation of liquified natural gas (LNG) shipments from Damietta LNG plant to Italy or Europe. The agreement aims to achieve the optimum use of Egypt’s reserve of gas through boosting the two companies’ joint production. The two companies will also launch a campaign, through the Egyptian General Petroleum Co (EGPC), to call for reinforcing the efficiency of energy across the oil sector which would help to cut electricity consumption. It is worth noting that Eni announced new oil discoveries, equivalent to approximately 8,500 barrels per day, at the Meleiha concession in the Egyptian Western Desert. (Arab Finance)
- Banque Misr has extended collaboration with Finastra, a London-based financial software company, through selecting the latter’s Fusion Trade Innovation and Fusion Corporate Channels.
Through this collaboration, the bank will digitalize its trade finance services and offer a premium user experience, helping it attract further customers and maximize its offering. The bank also selected Finastra’s partner DataGear, which is a banking and financial services provider in Egypt, to carry out the solutions of Finastra. (Mubasher)
- Eastern Company’s (EAST) board of directors has approved the taking over of UAE-based United Tobacco Company with 24% of its capital which amounts to 100 million EGP.
The board also decided to restructure the contractual relationship to manufacture Philip Morris products after the issuance of the relevant license. The license will allow United Company to lease the building and production lines dedicated to Philip Morris products for three years. (EGX)
- Cairo for Investment and Real Estate Development (CIRA) reported a consolidated profit attributable to the parent company of 283.351 million EGP during the six-month period ended February 28th, up from 229.821 million EGP the year before.
Operating revenue increased to 943.859 million EGP in September-February period, from 758.817 million EGP the year before. On the other hand, the company posted a standalone net loss after tax of 4.719 million EGP in the six months ended February 28th, compared to a net profit of 6.146 million EGP a year earlier, financial statements showed. (EGX)
- Cairo Educational Services (CAED) reported a net profit after tax of 20.043 million EGP in the six-month period ended February 28th, up from 18.367 million EGP in the same period a year earlier.
Operating revenue grew to 52.701 million EGP in the September-February period, from 45.523 million EGP the year before. Cairo Educational Services is an Egypt-based company that focuses on the establishment, management, and operation of private elementary and secondary schools in Egypt. (EGX)
- Moving to our Egypt Wheat talks, the General Authority for Supply Commodities (GASC) has purchased 350,000 tons of wheat in the latest tender.
The purchased supplies include French wheat, a rare cargo from Bulgaria, and one shipment from Russia. This tender marks GASC’s first successful wheat tender since the Russian invasion of Ukraine. Taking freight into consideration, the average amount of booked cargo nearly stood at 490 USD per ton, which is up by 44% from the rate paid in mid-February before the war began, a commodity risk manager at StoneX Matt Ammermann told Bloomberg. The latest tender drew offers from six companies, of which most were for French wheat, in addition to an offer for Russian supplies and rare offers for German and Bulgarian grain, according to unnamed traders.
- Finally, Egypt is constantly working on the provision of enough grains to meet the demand of its citizens, who mostly depend on the bread-subsidy program.
It is worth noting that the Egyptian government is considering importing wheat outside of tenders, making it possible for companies to submit their offers directly to the Ministry of Supply. The world’s largest importer of wheat seeks to supply around six million tons of local wheat at a value of 36 billion EGP in 2022. (Bloomberg)
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