Maatouk Bassiouni & Hennawi Advocates and Legal Consultants took over the legal procedures for the bidder

Newsletter

20 Jul 2022

For our top talks today, Maatouk Bassiouni & Hennawi Advocates and Legal Consultants took over the legal procedures for the bidder, the selling party – UAE Chimera, to acquire Beltone Financial Holding. This comes as Beltone Securities plays the role of the related broker and the recipient of the takeover offer. The Financial Supervisory Authority announced that it had agreed to publish the announcement of the purchase offer submitted by Chimpi 1 Investment BV Restructured Limited, a subsidiary of the UAE company Chimera, to acquire Beltone Financial Holding. The authority stated in a statement to the stock exchange yesterday, that the purchase price is estimated at 1.485 EGP per share, to acquire 417 million shares with a minimum of 51%, with a total value of 619 million EGP. (EGX)

The board of directors of Egyptian Chemical Industries (KIMA) (EGCH) has approved renewing the contract signed with the Italian engineering company Maire Tecnimont regarding the operation and maintenance of the ammonia and urea plant for two years as of June 25th.
Moreover, the board has decided to renew the insurance policy for the plant with Misr Insurance Company for two years starting June 26th 2022 until June 26th 2024. The board has also agreed to renew the contract signed with Schneider Electric for the machines’ maintenance at the ammonia and urea plant for two years as of July 1st. KIMA is an Egypt-based nitrogen-based fertilizers manufacturing leader and is engaged in the agricultural chemicals industry. The company produces and distributes various products, including urea, ammonium nitrate, ferrosilicon alloy, liquid ammonium nitrate fertilizer, prill ammonium nitrate fertilizer, liquid ammonia, aqua-ammonia, nitric acid, hydrochloric acid, and silica fume. (EGX)
Sixth of October Development and Investment Company (SODIC) announced that it is not in the process of revising the indicative price of the potential acquisition of up to 100% of Madinet Nasr Housing and Development’s (MNHD) share capital.
This decision comes as a result of the non-approval of MNHD’s board to proceed with the due diligence process or to provide additional information regarding this matter. Thereof, SODIC has denied all the recently circulated news in regard to the acquisition. On July 17th, MNHD said that its board of directors has rejected the non-binding offer submitted by SODIC for purchasing 100% of the company’s share capital as the offer does not match the real value of MNHD and its assets. On July 5th, SODIC submitted the non-binding purchase offer for MNHD through a mandatory tender offer (MTO) at an indicative price ranging between 3.2 and 3.4 EGP per share. (EGX)
London-headquartered international oil and gas exploration and production company SDX Energy has announced that shareholders owning 25.65% of the company are declining merger with energy company Tenaz.
SDX will hold a general assembly meeting on July 29th to discuss the Scheme of Arrangement, which is a court-approved agreement between a company and its shareholders or creditors and impactful on mergers. Aleph, a major shareholder in SDX, expressed its intent to cooperate with the latter’s board in exploration of sources for financial, commercial, and technical support. It is worth noting that SDX’s projects are focused in the Middle East and North Africa (MENA) region, especially in Egypt where the company owns working interests in a handful of natural gas fields. (EGX)
Renewable energy company Infinity and the Africa Finance Corporation (AFC) are finalizing a deal to acquire green power company Lekela Power.
The deal includes Lekela’s portfolio of operational wind power projects in Egypt, South Africa, and Senegal, with a total installed capacity of more than 1 gigawatt (GW). The deal also covers Lekela’s greenfield projects in the pipeline whose compound capacity amounts to 1.8 GW. “Our acquisition of Africa’s largest independent power producer in the renewables sector is a major milestone in our strategy for growth across the African continent,” Infinity’s Co-Founder and Chairman Mohamed Ismail Mansour said. (Arab Finance)
Orascom Development Egypt (ODE) (ORHD) recorded net real estate sales of 4.7 billion EGP in the first half (H1) of 2022, up by 16.9% year-on-year (YoY), according to the company’s H1 2022 preliminary unaudited key performance indicators (KPIs) released on July 19th.
Net sales were driven by the 39.4% YoY increase in new sales for the second quarter (Q2) of 2022. New sales amounted to 2.7 billion EGP in Q2 2022, compared to 1.9 billion EGP in Q2 2021. El Gouna registered new real estate sales of 1.1 billion EGP in Q2 2022, rising by 8.6% YoY from 1.0 billion EGP in Q2 2021, which brings H1 2022 sales to EGP 2 billion. In O West, sales reached 2.4 billion EGP in H1 2022, growing by 73.6% from 1.4 billion EGP in H1 2021. Meanwhile, real estate sales in Makadi Heights dropped to 304.4 million EGP in H1 2022, compared to 583.9 million EGP in H1 2021. (Arab Finance)
Digital payment solution provider Arab Financial Services has announced plans to expand in Egypt. AFS Egypt will provide the market with up-to-date payment solutions catering to the needs of business and financial institutions in the market.
“The unprecedented growth in the Egyptian market over the past few years has yielded opportunities for all stakeholders in the payments ecosystem to expand regionally,” AFS’ CEO Samer Soliman said. “Entering the Egyptian market reflects its importance and potential. It also aligns with AFS’s vision to become the leading enabler for digital transaction transformation across the Middle East and Africa region,” Soliman added. A subsidiary of the Manama-based Bank ABC, AFS is owned by 37 banks and financial institutions. It serves more than 60 clients in over 20 countries. (Arab Finance)
The Financial Regulatory Authority (FRA) has approved the prospectus of the mandatory purchase offer (MTO) submitted by Chimp 1 Investment SPV for a stake ranging between 51% and 90% of Beltone Financial Holding’s (BTFH) share capital.
The offered price for acquiring the majority stake in Beltone Financial has been set at 1.485 EGP per share. Beltone is an Egypt-based company that operates within the diversified financial sector focusing on investment banking and brokerage. The company develops an online trading platform, called Beltone Trade, as well as provides brokerage services, asset management, investment banking, liquidity services in regional markets, and research and analysis services. (Al Mal)
Moving to our economy talks, the Egyptian President Abdel Fattah Sisi last Monday, during a press conference with German Chancellor Olaf Scholz in Berlin, he called on "our friends in Europe to send a message to the International Monetary Fund and the World Bank that the reality in our country does not tolerate the standards in force during this stage and until this crisis ends."
Egypt has been in talks with the International Monetary Fund since last March about possible support that could include a new loan, as the shocks caused by the war in Ukraine add pressure on the country's economy. This is the first time that negotiations have dragged on to this extent without announcing a final agreement. We believe the issue is purely political, and it is not related to a program or criteria, but I expect that an agreement will be reached in the end, but not in the near future. (Al Mal)
Sisi also said during the press conference that "the food and energy crisis is very, very, very pressing on the Egyptian economy."
Last week, the Egyptian government decided to raise the price of diesel for the first time since July 2019, by about 50 piasters to 7.25 EGP per liter, in a move that could raise inflation in the country to new levels. It also raised the price of all three types of gasoline for the sixth time in a row. It is noteworthy that the country has a financing gap of between 40 billion and 45 billion USD over the next 12 months. So, Egypt is in great need to an IMF loan, as it will pace the way to other financing by opening the appetite of foreign investors to return again to invest in government debt instruments. (Al Mal)
Egypt has agreed with Germany to cooperate in hydrogen and energy projects in the context of the European endeavors for the diversification of energy sources and minimization of its dependence on Russian natural gas, the German Chancellor Olaf Scholz said in a press conference with the Egyptian President Abdel Fattah El-Sisi on July 18th.
For transformation of industry in Germany, electricity and hydrogen are important resources, Scholz added. A large amount of hydrogen will be imported, the Chancellor revealed, describing Germany's need for natural gas imports as a very big opportunity for other countries. If we to learn one lesson from this crisis, it will be the significance of diversification. You should not depend on a single partner; there should be several suitable partners, Scholz said. (Arab Finance)