KEY THEMES
According to media reports quoting a statement by Baker McKenzie Cairo, TMG Holding [TMGH] sold assets worth EGP9bn to Rawasi for Real Estate Development which is a joint venture between National bank of Egypt (NBE) and Banque Misr. However, we note that TMGH has already been booked EGP4bn in 2020, which leaves the remaining EGP5bn to be confirmed by TMGH. At any rate, this helped TMGH re-rate higher during yesterday’s session. Elsewhere, Zahraa Maadi Investment & Development [ZMID] has been on the rise lately, up a robust 121% since the last week of May 2021, with improved trading volumes every day. We like to direct your attention to the fact that ZMID is c.20% owned by Arab Investment Bank (aiBank), which is the bank that EFG Hermes Holding [HRHO] has recently approved to acquire a 51% stake in. It is highly possible, and to some extent recommended, that HRHO will opt to monetize the bank’s aforementioned investment. Hence, the hype around the name could be justified. We note that ZMID has a land bank close to 5mn sqm and has generated EGP490mn in revenues and EGP213mn in bottom line during 2020.