As Zilla Capital expected, the CBE hiked interest rates by 200 bps amid rising inflation and continued pressure on the EGP

Newsletter

02 Apr 2023

As Zilla Capital expected, the CBE hiked interest rates by 200 bps amid rising inflation and continued pressure on the EGP. The CBE cited the rapid rise in consumer prices as the rationale behind its decision, adding that the decision aims to contain inflationary pressures” as well as “avoid secondary supply shocks” resulting from inflationary expectations

AAIB wants above market price
The offer represents a 34-61% premium to PHD’s share price of EGP 1.86 at market close on Tuesday. PHD shares’ most recent peak was EGP 2.30 at the end of January. AAIB is Palm Hills’ second-largest shareholder after the company’s founding Mansour family, which collectively owns around 49%. The remaining stake is divided among minority shareholders and free float shares on the EGX. The UAE’s Aldar and ADQ together acquired more than 85% of upmarket real estate developer SODIC in late 2021. (Al Mal)
Shareholders of state-owned Paint and Chemical Industries (Pachin) have until market close on 12 April to decide whether sell shares to Eagle Chemicals or National Paints Holding (NPH)
Which have launched rival mandatory tender offers (MTO) for the EGX-listed firm. Eagle Chemicals is offering to acquire at least 75% of Pachin for EGP 37.00 per share, EGP 1.00 higher than the rival bid submitted by National Paints Holding (NPH) last week. Compass Capital has reportedly wrapped up its due diligence on Pachin and is preparing to submit a rival MTO within days. (EGX)
Gov’t grants golden licence to BSH Bosch and Beko Group
Egypt’s Cabinet agreed during its weekly meeting on Wednesday to grant the golden licence to BSH Bosch Company and Beko Egypt Group. Through the golden licence, Germany's BSH Bosch Company will be able to establish and operate a factory for producing home appliances in Sharqia governorate, while Beko Egypt Service will be able to construct and operate a factory for electronics assembly and production in the same governorate. (Ahram Online)
A Developments, Reliance Group and SwissChem, will invest 800 million EGP to redevelop the Interior Ministry’s former headquarters in the downtown area of Lazoghly into a tech and business hub
A Developments is a newly-established real estate developer focused on adaptive reuse projects and boutique developments. The company is currently lining up funding from domestic banks for the project. (Hapi Journal)
Moreover, A Developments is close to signing an agreement with a leading hotel chain to manage two buildings in the complex
Including a three-star, youth-oriented hotel as well as long-stay serviced apartments, Osman tells us. The company is also in advanced talks with a leading international outsourcing company and a major US VC fund, and has recorded strong interest from potential tenants. (Hapi Journal)
Supermarket chain Spinneys Egypt will deploy some 450 million EGP to open a dozen new stores across the country by mid-2024
The company expects the expansion to increase sales by 30%. Spinneys is spending around 200 million EGP on six new branches, all of which should be complete by the end of June. The chain plans to spend 250 million EGP on another seven branches next fiscal year, including one at the new administrative capital. (Al Borsa)
Eagle Chemicals’ mandatory tender offer (MTO) to acquire at least 75% of state-owned Paint and Chemical Industries (Pachin) opened last Thursday and will run until market close on 12 April
Eagle Chemicals is offering 37.00 EGP per share, 1.00 EGP higher than the rival bid submitted by National Paints Holding (NPH) last week. The NPH offer, which had been set to close on 4 April, has been extended and will now wrap on the same date. Compass Capital has reportedly wrapped up due diligence on Pachin and is preparing to submit a rival MTO within days. (Al Mal)
UAE Ruler Names Son Crown Prince, Elevates Other Royals.
The ruler of the United Arab Emirates named his son crown prince of Abu Dhabi, effectively positioning him as the next in line in the major OPEC oil exporter, and elevated several powerful brothers in a careful division of power. The UAE’s 62-year-old ruler Sheikh Mohammed bin Zayed, chose his eldest son Sheikh Khaled bin Mohammed bin Zayed Al Nahyan, 43, as crown prince. He’s been groomed for leadership through his membership of the powerful Abu Dhabi Executive Council and the main national security body since 2016. (Bloomberg)
Unnamed Saudi investors are mulling the acquisition of Arab African International Bank’s (AAIB) 12.9% stake in EGX-listed Palm Hills Developments (PHD) as the bank looks to exit the high-profile real estate developer
Palm Hills shares gained 0.4% yesterday to close at 1.87 EGP. AAIB was looking to sell its entire stake in PHD to Emirati investment company Al Ain Holding. AAIB is reportedly aiming to sell its shares in PHD at 2.50-3.00 EGP apiece, a price that would roughly equal in USD terms what it paid to acquire the stake nearly three years ago. (Bloomberg Asharq & Al Mal)