The Saudi sovereign fund acquires stakes in 4 Egyptian companies for 1.3 billion USD

Newsletter

11 Aug 2022

The Saudi sovereign fund acquires stakes in 4 Egyptian companies for 1.3 billion USD. According to the new deals, the Saudi Egyptian Company acquired 25% of thee-finance for financial and digital investments and 19.82% of the company Abu Qir Fertilizers and Chemical Industries, 25% of Mobco Fertilizer and 20% of Alexandria Container Handling. The Saudi Egyptian Investment Company confirmed that these deals are in line with the company’s strategy, which aims to invest in a number of promising sectors in Egypt, as it is one of the most important economic markets in Africa. (Bloomberg Asharq)

It is noteworthy that the deals will actually give positive signals to the market. The government hit two birds with a stone today, as the state has exited some companies, in addition to providing hard currency to the economy.
We believe the deals come amid the government's understandings with the IMF to give more space to the private sector rather than the government sector. In other words, we could say that the IMF loan is expected to be concluded next September. Yesterday’s deals will increase foreign direct investment in Egypt because all of them are higher than 10%. (Zilla Capital)
The Paints and Chemical Industries Company, Pachin, announced that the Saybad Industrial Investment Company has modified the initial price of the non-binding purchase offer to acquire the company's shares to range from 16.5 EGP to 18.75 EGP per share.
The offer price after the amendment is higher than the market price during today's session by 8.4%. Pachin had received a non-binding takeover offer from Sibad Industrial Investment Company, aiming to buy up to 90% of the company's shares with a minimum of 51%, at an initial price ranging between 16 and 16.5 EGP per share, provided that the due diligence procedures begin to determine the final price of the offer. (Hapi Journal)
Ezz Ceramics and Porcelain, Al-Jawhara achieved a net profit after tax of 82.191 million EGP during the first half of this year, compared to 52.116 million EGP in the comparable half last year, recording a growth of 57.5%.
Sales jumped to 884.9 million EGP during the period January-June 2022, compared to 654.703 million EGP in the corresponding period. The cost of sales rose during the same period to 647.826 million EGP, compared to 465.847 million EGP in the same period last year. Al-Ezz Ceramic's total profit rose to 237.074 million EGP during the first half of this year, compared to 188.856 million EGP in the comparable half last year. (EGX)
PayTabs Egypt signs a partnership agreement with Wafferha to provide digital payment solutions to customers and merchants.
This partnership will enable Wafferha users to obtain the best offers and benefit from the digital payment solutions provided by PayTabs Egypt to complete purchases quickly and easily. In addition, merchants will be able to reach a larger base of customers with the availability of many unique means of making payments. (WAYA)
The board of directors of Oriental Weavers Carpets (ORWE) has agreed to exit from its investments in China.
Accordingly, the company will accept the submitted offer to sell its entire stake in its Chinese unit Oriental Weavers Tianjin.In August 2021, Oriental Weavers announced that its board of directors was considering selling or liquidating its Chinese unit Oriental Weavers Tianjin. (EGX)
The cost of fuel puts inflation back in Egypt's cities on its upward trajectory recording 13.6% in July on an annual basis, compared to 13.2% in June.
Egyptian government raised Last July, the price of diesel for the first time since July 2019, by about 50 piasters to reach 7.25 pounds per liter, in a move that is expected to raise inflation in the country to new levels. Also raised the price fuel of its three types for the sixth time in a row. It is worthy to mention that inflation figures came less than expectations. We were expecting inflation to reach 15%, as diesel affects the price of everything in Egypt, so we expect greater momentum with inflation levels in Egypt. (Bloomberg Asharq & Zilla Capital)
The middle and poor classes in Egypt have suffered during the past years from a sharp rise in the prices of all goods and services.
Over the past few years, army trucks have spread across the country selling food products at cheap prices, and armed forces outlets have increased. In addition, to ease the burden of the reform program on low-income people; The Egyptian authorities have taken a number of measures, including increasing wages and salaries, raising the tax exemption limit, and applying exceptional bonuses. (Zilla Capital)
The Egyptian National Railways (ENR) signed an agreement with Spanish train manufacturer Talgo to produce and supply seven luxurious sleeper trains.
Under the agreement, Talgo will conduct maintenance for the new trains for 15 years, including the supply of spare parts and relevant equipment. The new trains will feature 18 carriages each, Minister of Transportation Kamil El-Wazir revealed. Furthermore, the ENR and the National Egyptian Railway Industries Company (NERIC) signed a protocol with Talgo to consider establishing a factory for the manufacturing of train carriages in Egypt. The protocol includes producing 500 carriages of various types as the first phase of manufacturing a total of 1,000 carriages. (Arab Finance)
The Minister of Housing and the Governor of Cairo are following up on preparations for handing over the units of the Maspero Triangle Development Project.
The Minister of Housing stated that the housing procedures for returning residents to the area will be announced through Cairo Governorate, in coordination with the Ministry of Housing and the Urban Development Fund, on August 31, and within a month of the announcement, the citizen will complete the required papers and pay installation fees. (Al Mal)