Today’s Top News & Analysis
AD Ports wants to invest in the Nile river transportation
Government to increase export subsidies to EGP28-30bn in FY2023/24
Investment authority approves 13 golden licenses and reviews 40 more
IDA to allocate new industrial land next month
Telecom Egypt raised its proposed cash dividend
Maridive’s subsidiary signs a preliminary MoU with Al Gihaz Holding
OFH 2022: Higher net losses but the same clean balance sheet
Eastern Company to raise its selling prices
Dice to buy back 70mn shares at a 5% premium to market
Macro
AD Ports wants to invest in the Nile river transportation
It has been reported that AD Ports is looking to invest EUR500mn to build a transportation infrastructure for the Nile river. This includes new fuel stations for barges, developing river boats, and bringing amphibious buses to Egypt. (Al-Borsa)
Government to increase export subsidies to EGP28-30bn in FY2023/24
In a meeting held yesterday, the government announced its plan to increase export subsidies to EGP28-30bn in FY2023/24 from EGP8bn for the current year. This new export subsidy program is to start next year, and will allow companies to receive subsidies within three months of submission. (Cabinet)
Investment authority approves 13 golden licenses and reviews 40 more
The General Authority for Freezones and Investment (GAFI) is studying the applications of 40 companies submitted for golden licenses. Meanwhile, the authority has approved 13 golden licenses to various companies, including a USD5.5bn green ammonia plant in Ain Sokhna and an EGP8.8bn home and electrical appliances manufacturing and assembly facility in Menoufia. (Al-Arabiya)
IDA to allocate new industrial land next month
The Industrial Development Authority's (IDA) head announced that the authority is preparing to allocate new industrial land by next month as they are currently studying 500 requests from local and foreign investors. (Al-Borsa)
Corporate
Telecom Egypt raised its proposed cash dividend
Telecom Egypt’s [ETEL] BoD approved raising its proposed cash dividend from EGP0.75/share to EGP1.25/share, implying a 6% yield. (Company disclosure)
Maridive’s subsidiary signs a preliminary MoU with Al Gihaz Holding
Valentine Maritime Ltd., a wholly-owned subsidiary of Maridive & Oil Services [MOIL], signed a preliminary MoU with Saudi Al Gihaz Holding for the latter’s purchase of a few naval units and Valentine’s 60% stake in its Saudi subsidiary. The terms of the MoU are as follows:
· The settlement of all outstanding debts pertaining to the naval units intended for purchase.
· The settlement of other dues valued at USD28.5mn.
· Valentine will receive USD300,000 in exchange for the company’s stake in its Saudi subsidiary.
· Valentine will receive credit facilities worth USD15mn for a period of nine months to settle other dues related to the company or its subsidiaries, only after Al Gihaz acquires the naval units and Valentine’s stake in its Saudi subsidiary. (Company disclosure)
OFH 2022: Higher net losses but the same clean balance sheet
Orascom Financial Holding’s [OFH] net losses after minority in 2022 widened to EGP72mn vs. EGP24mn a year earlier. Higher net losses can be attributed to other operating expenses that rose to EGP33mn (+235% y/y). We note that OFH’s net losses came in despite higher interest income of EGP45mn (+272% y/y) and FX gains of EGP41mn. Still, OFH’s balance sheet remained in very good shape with net cash recording EGP677mn (i.e. 68% of market cap). (Company disclosure)
Eastern Company to raise its selling prices
Eastern Co. [EAST] BoD approved raising the selling prices for all of its products. The raise comes between EGP1-3/pack, effective 25 March 2023. Noting that this is the second price increase to be applied since last September. Meanwhile, EAST raises its prices to overcome the increasing raw material costs. (Company disclosure, Economy plus)
Dice to buy back 70mn shares at a 5% premium to market
Dice Sports & Casual Wear [DSCW] will buy back 70mn treasury shares or 3.918% of its outstanding share at EGP0.45/share, a premium of 4% to the 26 March 2023 market price. We note that DSCW was initially going to buy back 90mn shares (5.04%) at EGP0.35/share. (Company disclosure)
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