Not a Done Deal

Apr 19, 2023

Today’s Top News & Analysis

KIA denies any involvement in The United Bank’s acquisition
Egypt’s New Supreme Council for Investment hopes to attract more FDI
Adeer plans to invest SAR5bn in Egypt through 2025
CLHO’s OGM decided not to distribute dividends for 2022
MICH 9M 2022/23: Strong y/y earnings growth despite sequential slowdown
CAED Q2 2022/23: Lower net profits despite strong revenues on narrower GPM
Elsewedy Electric BoD approves cash dividend of EGP0.40/share
Egytrans’ BoD approves NOSCO acquisition through a share swap; increases capital
MOPCO's OGM approves distributing EGP15/share

Macro

KIA denies any involvement in The United Bank’s acquisition

Kuwait Investment Authority (KIA) released a statement denying circulating news of its acquisition of The United Bank, which we mentioned yesterday citing media sources. (KIA)

Egypt’s New Supreme Council for Investment hopes to attract more FDI

A new Supreme Council for Investment will be formed under the direct leadership of the Egyptian President. The council’s membership will consist of the Prime Minister, other cabinet ministers, Governor of the CBE, Chairperson of the EGX, and CEO of The Sovereign Fund of Egypt among other influential heads of associations. The council aims to create a fruitful investment framework through legislative and administrative reforms to attract FDI and rejuvenate the Egyptian economy. (Zawya)

Adeer plans to invest SAR5bn in Egypt through 2025

Saudi Arabia’s Adeer Real Estate Service Co., a subsidiary of Sumou Holding Co., plans to invest and attract SAR5bn to the Egyptian real estate market by 2025. Adeer hopes to expand in the Egyptian market by working with several Egyptian real estate developers, starting with Paragon Developments. Adeer will help market Paragon’s properties internationally, especially in the GCC region and Europe. (Al-Mal)

Corporate

CLHO’s OGM decided not to distribute dividends for 2022

Cleopatra Hospitals Group’s [CLHO] OGM decided not to distribute any dividends from 2022 net profits. (Company disclosure)

MICH 9M 2022/23: Strong y/y earnings growth despite sequential slowdown

Misr Chemical Industries [MICH] reported its preliminary results for 9M 2022/23, recording net profits of EGP435mn (+194% y/y) on higher revenues of EGP676mn (+70% y/y). Meanwhile, Q3 2022/23 net profits slipped 12% q/q to EGP155mn on lower revenues of EGP220mn (-14% q/q). (Company disclosure)

CAED Q2 2022/23: Lower net profits despite strong revenues on narrower GPM

Cairo Educational Services [CAED] reported Q2 2022/23 net profits of EGP11mn (-1% y/y, +20% q/q), despite double-digit growth in revenues of 13% y/y reaching EGP32mn (+18% q/q). Gross profit margin declined by 4pp y/y to 51% (+1pp q/q). (Company disclosure)

Elsewedy Electric BoD approves cash dividend of EGP0.40/share

Elsewedy Electric’s [SWDY] BoD approved a cash dividend of EGP0.40/share (slightly more than our expectations of EGP0.36/share), implying a 2.3% yield. (Company disclosure)

Egytrans’ BoD approves NOSCO acquisition through a share swap; increases capital

Egytrans’ [ETRS] BoD approved the acquisition of 99.9% of National Transport & Overseas Services Co. (NOSCO) by a share swap at the ratio of 1 ETRS share for 0.0447 NOSCO share based on the fair values for each company. The IFA valuation came in at EGP2.594/ETRS share and EGP58.033/NOSCO share. Also, ETRS's BoD approved a capital increase of EGP68.9mn or 26.6mn shares at fair value, EGP1.8mn of which will be paid in cash by National Investment Bank (NIB) with the remaining EGP67.1mn to be issued as new shares for NOSCO's shareholders as part of the share swap. (Company disclosure)

MOPCO's OGM approves distributing EGP15/share

Misr Fertilizers Production Company's (MOPCO) [MFPC] OGM has approved distributing cash dividends of EGP15/share for 2022, which implies a payout ratio of 48% and a dividend yield of 8.5%. (Company disclosure)