Giza Systems is looking to invest between 5-10 million USD per transaction to acquire three or four companies

Newsletter

27 Mar 2023

Giza Systems is looking to invest between 5-10 million USD per transaction to acquire three or four companies that have a significant presence in the Saudi market as well as an Egypt-based workforce. The acquisitions will enable Giza Systems to recruit top talent at a lower cost than in Saudi Arabia, particularly given the recent devaluation of the EGP. (Al Mal)

IMF says Egypt loan review yet to start as end-March goal nears
The International Monetary Fund (IMF) said it is yet to set a date for the first review of its 3 billion USD loan program with Egypt, which it had previously indicated may be completed this month. The Washington-based lender had said in a 10 January report that the first review “is expected to be completed by end of March”. (Bloomberg)
The World Bank will lend Egypt 7 billion USD over the next five years to support private-sector job growth, health and education services, and climate measures
The Country Partnership Agreement, approved by the bank’s executive board on Tuesday, will see the International Bank for Reconstruction and Development (IBRD) provide 1 billion USD a year through to 2027 and the International Finance Corporation (IFC) lend 2 billion USD during the period. The agreement looks to achieve its goals by creating more and better private-sector jobs, improve the provision of health and education services, and strengthen the country’s resilience to macro-economic and climate-related shocks. (Al Mal)
Abu Dhabi Ports (ADP) has reportedly submitted an initial offer to acquire a controlling stake in state-owned Port Said Container and Cargo Handling (PSCCHC) and Damietta Container and Handling (DCHC)
The Qatar Investment Authority’s investment arm Maha Capital Partners had submitted an offer to acquire stakes in the two terminal operators in January. The negotiations with Qatar have stalled over the size of the stake Maha Capital wants to acquire, with the Transport Ministry reportedly reluctant to sign off on the QIA acquiring a majority stake in the companies. Qatar had inked an MoU to invest in Egypt’s port infrastructure, a few months after pledging to invest 5 billion USD into the economy to help shield the country from the fallout from the war in Ukraine. (Al Mal)
ADP has inked a MoU with the Suez Canal Economic Zone to develop and operate a multi-purpose container terminal in East Port Said Port
The company will start work on the new terminal in the coming months with the aim of having the first phase of the project up and running in 2Q 2024. The terminal will complement a nearby logistics zone the group is working on. (Al Mal)
B Investments’ board signed off on investing up to 500 million EGP in the Sovereign Fund of Egypt’s (SFE) healthcare and pharma sub-fund
The investment is one of two agreements the firm signed with the SFE in January that could channel more than 2 billion EGP into local healthcare and pharma businesses. The SFE is looking to draw an initial 1.2 billion EGP for the sub-fund, and hopes to raise additional capital down the line. It will invest in local pharma players to help them expand into under-served cities around the country and improve their digital offering. The fund had also agreed to invest 100 million EGP in B Healthcare Investments, which aims to raise up to 1 billion EGP to deploy in the specialized healthcare sector, with B Investments contributing an additional 200 million EGP. (Al Mal)
Chinese company to inject 2 billion USD into cast-iron pipelines, steel industry
A Chinese company is planning to invest 2 billion USD to establish a project for manufacturing cast-iron pipelines and steel industry in Egypt. The project is set to be built on an area of 1.7mn square metres at the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in Ain Shams. The annual turnover of the project is expected to be around 2.6 billion USD. It will be implemented over two stages and will offer over 2,100 jobs. (Zawya).
The International Finance Corporation (IFC) will invest 25 million EUR in Malta-based impact investor Mediterrania Capital Partners’ Mediterrania MC IV fund
The IFC could invest an additional 20 million EUR in the fund. The European Bank for Reconstruction and Development and the European Investment Bank have both expressed interest in committing a combined 35 million EUR to the fund. The fund will invest in mid-cap companies in Egypt, Morocco and Tunisia and has an EUR 350 mn target close. The fund will focus on the healthcare, fast-moving consumer goods, financial services, and manufacturing sectors, with 25% of its capital earmarked for women-owned business. (Al Mal)
Abu Dhabi Ports (ADP) will develop and operate a container terminal at Safaga Port under a 200 million USD
30-year concession agreement signed with the government. Meanwhile, Mercedes-Benz, local shipping firm Kadmar and two Chinese companies inaugurated new logistics zones and factories in the Suez Canal Economic Zone. (Al Mal)
Real estate developers Orascom Development Egypt (ODE) and SODIC have agreed to end talks on SODIC’s bid to acquire Orascom for Real Estate (ORE)
The company did not disclose why the talks fell through. ODE shares gained 1.5% during trading on Thursday to close at 7.99 EGP SODIC shares were up 6.6% to close at 13.19 EGP SODIC in October submitted a non-binding offer to acquire 100% of ORE for almost 2.5 billion EGP ORE, which owns the 4.2 million sqm O West development, is 70% owned by ODE. (Al Mal)
Eastern Company unveils new cigarette prices
Under the new price list, the price of the 10-cigarette pack of Box 10 has been set at 15 EGP, while the price of the 20-cigarette pack of Cleopatra King Size and the 20-cigarette pack of Cleopatra Soft Queen have been set at 23 EGP and 24 EGP, respectively. Moreover, the 20-cigarette pack of Boston/Belmont will cost 24 EGP, and the 20-cigarette pack of Cleopatra Box will cost 24 EGP. The new prices have been applied as of Saturday, March 25th. (EGX)