Today’s Trading Playbook
KEY THEMES
It’s the end of a month, but it’s not the end of M&A activities in Egypt. We might start to sound like a broken record, but the M&A theme continues to be prevalent in the Egyptian stock market. Last Thursday, we learned that ADNOC Distribution [ADX: ADNOCDIST] has agreed to acquire a 50% stake in TotalEnergies Egypt (TE) for USD186mn with USD17.3mn in additional payout subject to certain conditions. What does this have to do with EGX? It’s B Investments Holding [BINV] again that is the subject of this deal as an EGX-listed name. BINV owns a 6.38% stake in TE, together with an affiliated company that holds another 9.00% stake. This works out to be USD203.3mn for a 50% stake in TE, implying an EGP493mn value for BINV’s 6.38% stake or EGP3.1/share. If BINV were to dispose of its stake, the net value post-tax would be as much as EGP2.9/share, almost 29% of BINV’s market value. This is not the first time this year where BINV was involved in a potential sale of an investment. In April 2022, BINV agreed to sell its 44.7% economic interest in Giza Systems which was valued at a total enterprise value of USD145mn. We note that BINV is one of the 15 stocks we had picked in our STANDPoint 2022 strategy outlook published on 30 January 2022.
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