UAE's Chimera is in the process of submitting an offer to acquire a stake in Egypt's Beltone | Zilla Capital

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14 Jun 2022

UAE’s Chimera is in the process of submitting an offer to acquire a stake in Egypt’s Beltone

Let’s begin with our EGX and companies talks, UAE’s Chimera is in the process of submitting an offer to acquire a stake in Egypt’s Beltone. Beltone Financial Holding, a 58.2% subsidiary of Orascom Financial Holding (OFH), has received a mandatory purchase offer from Chimera Investments, an Abu Dhabi-based private investment company, or one of its subsidiaries to acquire a 51-90% stake in Beltone. Chimera will provide a purchase offer and legal documents to complete the transaction after receiving the relevant regulatory approvals in Egypt and the UAE. It is noteworthy to mention that in the first quarter (Q1) of 2022, the consolidated net profits of Beltone rose to 3.83 million EGP, compared to 3.80 million EGP in the year-ago period, including minority shareholders’ rights. (Mubasher)

Moreover, Beltone, which has been burdened with losses since 2017 to date, has two initial offers to acquire up to 90% of its shares, the first from an Egyptian consortium led by WM at 1.35 EGP per share, and the second from the UAE's Chimera Investment at 1.485 EGP per share.
Beltone has accumulated losses of 577 million EGP, based on the company's statement of financial position until the end of March 2022. The company, which incurred annual losses from 2017 to 2021, turned into a modest profit in the first quarter of this year, which amounted to 3.8 million EGP. The initial purchase offer submitted by "Chimera" is about 30% more than the closing price of "Beltone" share in the Egyptian Stock Exchange, Sunday, at 1.14 EGP, bringing the value of the deal in the event of the acquisition of 90% to about 596 million EGP. Note that the Orascom Financial Holding company owns 58% of Beltone shares. (Bloomberg Asharq)
We strongly believe that whoever puts a higher price will win the deal, and it is difficult to submit an acquisition offer on a company without the party willing to buy spoke with the owner of the majority stake in the target company.
Last December, Chimera acquired 25% of the capital of Naguib Sawiris' Gemini Holding Company in a deal valued at 100 million USD, which indicates the existence of previous ties between the two parties. Established in 2007, Chimera is an Abu Dhabi-based investment company. Chimera, which is affiliated with the Royal Group, owned by National Security Adviser Sheikh Tahnoun bin Zayed, manages a diversified private investment portfolio that includes listed and unlisted shares in the local and regional capital market. (Zilla Capital)
Second, Solid Capital, the independent financial advisor (IFA), has set the fair value (FV) of Abu Dhabi Islamic Bank Egypt (ADIB) at 38.29 EGP per share before the capital increase and at 22.44 EGP per share after the capital increase.
This comes in line with the bank’s procedures for increasing its issued and paid-up capital to 4 billion EGP from 2 billion EGP. The capital is set to be doubled by 2 billion EGP at a par value of 10 EGP per share and issuance expenses of 5.23 piasters per share. ADIB Egypt is an EGX-listed bank that operates within the provision of retail, corporate, and investment banking services through a network of 69 branches located across Egypt. (EGX)
Alameda Healthcare Group has signed a memorandum of understanding (MoU) with the global healthcare provider Medtronic CEMA for cooperation in key operational areas.
The MoU will facilitate access to Medtronic’s wide range of modern medical technology as well as services of consultancy and hospital management. The ultimate goal of the protocol will be the optimization of treatment processes at Alameda facilities across Egypt. Alameda is a leading healthcare provider in Egypt with a total bed capacity of 1,023 beds and 128 clinics through a strategically located network of four facilities across Greater Cairo. (EGX)
And for our economy talks, Zilla Capital expecting that general inflation levels will continue to rise on an annual basis, as a result of the repercussions of rising commodity prices globally on the local market.
It is expected that inflation would continue to rise, with the global rise in commodity prices being reflected on the local market. We believe that the full impact of raising interest rates on inflation will take time to fully reflect, and we expect the Central Bank of Egypt to keep interest rates unchanged during the next Monetary Policy Committee meeting that will be held on June 23, 2022, to control inflation rates in light of the global instability. (Zilla Capital)
Elevated wheat prices to a record-high, coupled with pressures on the Egyptian pound, is expected to cost Egypt 3 billion USD in additional burdens, according to the Minister of Finance Mohamed Maait.
The anticipated additional cost will include 1.5 billion USD in burdens to the general budget, while 1.5 billion USD will be shouldered by the private sector, Maait said. The minister noted that maintaining the oil price at 122 USD per barrel would cost the budget 7.2 billion USD. As for the new program with the International Monetary Fund (IMF), Maait said that the program will involve structural reforms that promote the competitiveness of the investment climate and attract new investments. On June 2nd, Minister of Supply and Internal Trade Ali Moselhi revealed that the Egyptian government is in talks with India over a potential swap deal, upon which it could import wheat from the south Asian country in exchange for fertilizers exports. (Arab Finance)
Ministry of Agriculture and Land Reclamation has signed a cooperation protocol with the Agricultural Bank of Egypt (ABE) and Healthy Milk company for cooperation in the improvement of livestock breeds in Egypt.
The protocol involves the distribution of highly-productive dual-purpose livestock among small farmers through soft loans that will be repaid by returns from production, Minister of Agriculture El-Said El-Quseir announced. ABE will offer financing for small livestock farmers at a diminishing interest rate of 5% under the Central Bank of Egypt’s (CBE) initiative to support small businesses operating in agricultural and livestock production, the bank’s Chairman Alaa Farouk said. (Arab Finance)
In addition, the Egyptian agricultural exports have reached a volume of 3.5 million tons (Mt) during the period from January 1st 2022 until June 11th, the Minister of Agriculture and Land Reclamation El-Said El-Qosair revealed.
After satisfaction of domestic demand, the surplus is exported to secure foreign currency, El-Qosair added. Among Egypt’s key agricultural exports are citrus, potato, fresh onion, fresh tomato, strawberry, fresh and dry beans, garlic, and watermelon. Exports of citrus amounted to 1.486 Mt in the January-June period, while exports of fresh potato, onion, beans, and tomato recorded 746,950 tons, 152,560 tons, 70,472 tons, and 30,878 tons, respectively. On May 15th, Chairman of the Food Export Council (FEC) Hani Berzi unveiled that Egypt's exports of food industries grew by around 5% year-on-year (YoY) or 49 million USD during the first quarter (Q1) of 2022. (Arab Finance)
GlaxoSmithKline plans to expand manufacturing and introduce new products to the Egyptian market with the latest technology used globally in the coming period.
Mohamed El-Dababy, CEO and Managing Director of GSK confirmed that the company has discussed with a number of health authorities in Egypt its plans during the coming period, and there is an opportunity to sign more understandings and aspects of joint cooperation in the future, especially in the field of training and educating doctors and health care providers. Al-Dhababi indicated, in press statements, that the company produces 166 million drug packages annually in the Egyptian market, to treat various diseases by providing 160 products, which covers a large part of the market needs, pointing out that the company plans to expand the production of private medical drugs. (Al Mal)