Today’s Top News & Analysis
Urban inflation rises to +32.7% y/y in May
A foreign consortium to acquire electric power plants for USD2bn
The EGX to start futures trading soon
A Saudi firm to acquire 70% of El-Nasr Glass & Crystal Co.
Chemical Industries Holding Co. approves MICH’s TCCA project
SCZone to offer 20% of Port Said Container Handling through the EGX
ADQ interested in acquiring a stake in Kima
MACRO
Urban inflation rises to +32.7% y/y in May
Egypt’s urban inflation in May 2023 rose to +32.7% y/y (vs. +30.6% the previous month). This is higher than our forecasts of +30.7% y/y. Monthly inflation also rose to +2.7% m/m (vs. +1.7% m/m in April), according to CAPMAS. (Asharq Bloomberg)
A foreign consortium to acquire electric power plants for USD2bn
A consortium of Actis and Edra Power Holdings showed a renewed interest in acquiring up to 100% of Beni Suef Electric Power Plant and the operating rights for South Cairo Electricity Plant as well in a deal worth USD2bn. This consortium had shown interest in acquiring the plants before in 2019 from the government but negotiations did not go through at the time. (Asharq Bloomberg)
The EGX to start futures trading soon
The Egyptian Exchange (EGX) said it will start futures trading soon with futures contracts on the EGX 30 and EGX 70 EWI indices, with plans to avail futures on highly-liquid stocks later on. Moreover, it is also planned to list futures contracts on precious metals and options contracts. In similar news, there are currently negotiations with local banks to invest in Taswyat, the futures clearing and settlement services company. (Al-Mal)
A Saudi firm to acquire 70% of El-Nasr Glass & Crystal Co.
Saudi Egyptian Industrial Investment Co. is putting the finishing touches on the acquisition of a 70% stake in El-Nasr Glass & Crystal Co. through a capital increase in the coming weeks. The capital increase will be used to build a new production line for making solar panels glass. (Asharq Business)
CORPORATE
Chemical Industries Holding Co. approves MICH’s TCCA project
Misr Chemical Industries’ [MICH] majority stakeholder, the Chemical Industries Holding Co. (a 53% stake), approved commencing MICH’s project to produce trichloroisocyanuric acid (TCCA) 90% granular with an investment cost of EGP1.3bn. MICH is currently still conducting further studies to ensure the project’s success, searching for private-sector companies to partner with, and looking for banks to supply foreign currency to fund the project. (Company disclosure)
SCZone to offer 20% of Port Said Container Handling through the EGX
The BoD of the Suez Canal Economic Zone (SCZone) approved the sale of a 20% stake in Port Said Container Handling Co. [POCO] on the EGX. SCZone currently owns 39% of POCO's total shares, while Canal Shipping Agencies [CSAG] owns 20.1% of the company. (Enterprise)
ADQ interested in acquiring a stake in Kima
ADQ is reportedly interested in acquiring a 20-25% stake in Egyptian Chemical Industries (Kima) [EGCH], where the proceeds could be used for funding "Kima II" expansion. (Al-Borsa)
Markets Performance
Key Dates
14-Jun-23
EXPA: Right Issue / Last day for eligibility for subscription in the rights issue.
15-Jun-23
ZMID: OGM / Approving financial statements ending 31 Dec. 2022 and the proposed dividends.
17-Jun-23
MICH: EGM / Amending Article No. 6 of the company's bylaws for increasing the authorized capital from EGP400mn to EGP1bn.
18-Jun-23
MOIL: OGM / Approving financial statements ending 31 Dec. 2022 and the proposed dividends.
MOIL: EGM / Discussing the continuation of the company.
19-Jun-23
SUGR: Cash dividend / Deadline for eligibility for a dividend of EGP2.550/Share.
EXPA: Capital increase / Capital increase subscription starting date.
EXPA: Right Issue / First day of trading the rights issue.
20-Jun-23
SUGR: Cash dividend / Ex-dividend date for EGP2.550/Share.
22-Jun-23
AREH: OGM / Approving financial statements ending 31 Dec. 2022.
HELI: Cash dividend / Payment date for a dividend of EGP0.10/share (2nd installment).
SUGR: Cash dividend / Payment date for a dividend of EGP2.550/Share.
CCAP: OGM / Approving financial statements ending 31 Dec. 2022.
CCAP: EGM / Discussing the continuation of the company.
25-Jun-23
MCQE: EGM / Approving increasing the issued capital & amending Articles No. 6 & 7 of the company's bylaws.
26-Jun-23
BINV: OGM / Approving financial statements ending 31 Mar. 2023 and the proposed dividends.