Egypt will begin the process of offering two military-affiliated companies to investors on March 15, and is also planning to put forward another four large companies

Newsletter

13 Mar 2023

Egypt will begin the process of offering two military-affiliated companies to investors on March 15, and is also planning to put forward another four large companies. Advisers will provide investors with the necessary information about fuel distributor Wataniya and water-bottler Safi, according to the statement. A committee that’s responsible for listing state-run firms will also offer four “large” companies to investors through international investment banks, it said without naming the companies. The news comes as Egypt is working to move ahead on a sweeping economic reform program key to helping the North African nation raise sorely needed hard currency amid a crunch sparked by Russia’s invasion of Ukraine. The country of more than 104 million has already secured a $3 billion International Monetary Fund loan package, devalued the currency three times in the past year and is waiting for Gulf Arab allies to step up with billions of dollars more in investments. Though that money was previously pledged, little of it has trickled in. Officials had unveiled a list of 32 state-run companies, including several banks, that would either be listed newly on the stock exchange, witness additional stake sales or be offered to strategic investors. Additionally, authorities have said other companies not on the list, especially those they deem of high value, could also be offered. (Bloomberg)

ValU and Azimut partner to launch AZ valU Fund
valU, MENA’s leading lifestyle-enabling fintech platform, and Azimut, the leading multinational asset manager, announced today that they partnered to launch the AZ valU Fund, a money market fund providing people with a flexible and convenient investment solution featuring the market’s most competitive daily yields. The fund compounds interest daily, giving clients access to daily redemptions without locking capital up in long-term, fixed instruments. AZ valU Fund is suitable for consumers looking for stable, low-risk returns. The fund invests in a roster of secure, high-liquidity assets with short- and medium-term tenors, ultimately generating competitive average daily returns for customers. Clients can invest with no minimum or maximum restrictions and no transaction fees or commissions, with Azimut and valU clients being granted immediate access to valU limits worth up to 90% of their investment in the fund. Commenting on the partnership, Walid Hassouna, CEO of valU, said, “It gives us great pleasure to be offering the market this unique opportunity through Azimut, giving clients access to an investment product that grows their wealth and gives them the freedom to redeem returns any day should they need to. Through this, we’re confirming to our clients that we are not only catering to their ever-growing financial needs but also expanding our product universe in step with them. The birth of the AZ valU Fund is yet another milestone in valU’s transformational growth story as we work to build an end-to-end lifestyle-enabling financial ecosystem.” Rising interest rates in response to higher inflation and geopolitical tensions impacting supply chains worldwide have placed pressure on consumers. As such, they’re looking for solutions to help them grow their disposable income, thereby creating demand for financing and investment products. Consequently, it is more important than ever to bring to market alternative, low-risk financing instruments that stimulate higher returns and generate liquidity for individuals. (Hapi Journal)
CI Capital posts 16.8% YoY growth in 2022 consolidated profit
CI Capital Holding for Financial Investments (CICH) reported a 16.8% year-on-year (YoY) growth in consolidated net profit after minority interest for 2022, according to the company’s financial income statements sent to the Egyptian Exchange (EGX) on March 12th. Consolidated net profit after minority interest stood at EGP 756.093 million in 2022, compared to EGP 681.184 million in 2021. Operating revenues amounted to EGP 3.263 billion last year, compared to EGP 2.558 billion in the year before. On the other hand, the company’s standalone net profit after tax fell to EGP 149.431 million in 2022 from EGP 254.927 million in 2021. CI Capital is a leading diversified financial services group in Egypt that provides advisory on capital raising as well as mergers and acquisitions, in addition to asset management, securities brokerage, custody, and research through its investment banking platform. (Arab Finance)
“We have succeeded in transferring all our money and accounts from small banks. JP Morgan and Merrill Lynch.” Said Onsi Sawiris,Chairman of Orascom Financial Holding,Coincided with the collapse of Silicon Valley banking.
Onsi Sawiris added that last Thursday morning the HOF Direct Investment Fund sent messages to companies investing in the US and around the world with the need to transfer their deposits and money from SVB Bank to other banks. He explained that the HOF has several accounts and funds in several banks, but Silicon Valley Bank is not one of them. He pointed out that if a major bank acquires a Silicon Valley bank, it would be positive and contribute to faster access to depositors’ deposits, but on the contrary, the matter would be negative. He pointed out that emerging companies are currently vulnerable in light of the uncertainty regarding the circumstances surrounding the resolution of this crisis, noting that several investment funds such as the “HOF” direct investment fund are now expected to provide temporary financing to emerging companies. He pointed out that the “HOF” direct investment fund invests in more than 100 emerging companies in the US and abroad, about 30% of which have exposure to the “Silicon Valley” bank, and about 5-6 companies. Companies that failed to withdraw money from “SVB” but currently have received offers of about 80% of the value of its deposits, and the matter is being studied with those companies. (Hapi Journal)
Halwani Bros. Co. reported a 97 percent plunge in net profit to SR2.9 million in 2022
Halwany Bros. Profits fell from SR84.3 million in 2021 due to lower sales from its Egyptian subsidiary and as gross profit fell 21 percent year-on-year because of higher raw materials costs. Its share price slipped 2.19 percent to SR53.50. The Main reason behind the drop in sales of the Egyptian Subsidary was the recent devaluation of the EGP which has diluted the group’s profits in SAR in 2022. (Bloomberg Alsharq)
ValU targets offering its services in KSA and introducing 5 new product offerings in the Egyptian Market in 2023
Walid Hassouna, CEO of ValU Egypt for BNPL services, said that the company is currently in process to launch in KSA, as before launching in Egypt, there was no laws or regulations to regulate the BNPL services in the country, unlike Saudi Arabia. Hassouna added, during the press conference, today, that the Saudi market has a number of controls regulating the legal framework in the Kingdom and therefore the procedures for obtaining all the necessary approvals are in process during the current period. He stressed that in the upcoming period, valU will be also expanding its products outside Egypt and KSA, noting that the cooperation with Azimut and not the investment arm of EFG Hermes is due to the fact that the idea of the fund stems from Azimut in the first place. (Arab Finance)
Times Development begins construction work on New Cairo project before launch
The company said in a press release today that the project is being built over an area of 26 acres, with investments exceeding EGP 5 billion, as construction work continued during the last period despite the challenges that the real estate industry is facing. The company pointed out that it has signed with engineering consultancy firms and contracting companies in Egypt, stressing the aim of pumping EGP 300 mn into construction operations, and the operations are carried out according to the specified schedules. The company aims to build units of various areas and different models to suit all customers, in addition to a restaurant area, landscapes, and swimming pools. (Hapi Journal)
Banque Misr has signed a long-term cooperation agreement with Mastercard to provide the bank with the latest digital payment technology
Under the agreement, Banque Misr will be able to offer new products, services, and innovative solutions to customers from all segments as well as support advanced and competitive digital solutions, while Mastercard will provide the bank with the necessary tools and solutions to back its growth plans. The signing comes in line with Egypt’s strategy to achieve digital transformation and promote e-payment systems. The agreement has been signed by Chairman of Banque Misr Mohamed El Etreby and EEMEA President of Mastercard Dimitrios Dosis. “This partnership aims to support digital transformation and the financial technology pillars which focuses on connecting unbanked segments of society to convenient financial solutions. In turn, we work on curating partnerships that enhance our financial and non-financial services tailored specifically to them and delivered through our wide branch network across Egypt,” El Etreby said. (Arab Finance)
Egypt seeks further cooperation with India in financial inclusion, fintech. gypt is keen to enhance cooperation and exchange of expertise with India in the fields of financial inclusion and financial technology
Maait’s remarks came during his meeting with the Indian Ambassador to Cairo Ajit Gupte, where the minister expressed that India could benefit from the offered merits by the Suez Canal Economic Zone and the strategic location of Egypt as a re-export hub. Egypt has become qualified to attract domestic and foreign investments, including an advanced infrastructure, and more stimulating opportunities for production in various sectors of national priority, Maait said. Furthermore, Maait added that Egypt provides all aspects of support to the business community and the private sector companies amid the unprecedented global economic conditions. (Arab Finance)
Prime Holdings Board of Directors Faces Withdrawal of Confidence
Shareholders of Prime Holding for Financial Investments with voting rights representing 69% of the attendees at the General Assembly held last Thursday, called for withdrawing confidence from the Board of Directors and initiating a negligence lawsuit against the board, and setting a session to hold a general assembly within a month to form the new Board of Directors, with the current Board remaining until then. The General Assembly relied on the Article 160 of Law 159 of 1981, which states: "The General Assembly may decide to dismiss the members of the Board of Directors and file a negligence lawsuit against them, and this decision shall be valid when approved by the shareholders holding half of the company’s capital. (Hapi Jornal)