Egypt’s corporate news: February 8
According to Al -Alam Al-Youm newspaper, the Algerian government plans to offer GSM cellular network licenses in May 2001. It is worth noting that Orascom Telecom –OT (ORTE.CA) announced previously that it was expecting this development. OT’s management believes Algeria would be a valuable addition to their network portfolio.
Credit International D’Egypte –CIE (CIEB.CA) posted FY2000 results ending December, in which NAI declined 31.5 percent to LE9 million compared to LE13.2 million in FY99. Net interest income increased 0.4 percent to LE21.9 million versus LE21.8 million in the comparable period of FY99. Net loans and advances edged down 12.5 percent to LE501.4 million compared to LE572.7 million in December 1999, while deposits inched up 5.8 percent to LE465.8 million over the same period. Net loans-to-deposits decreased to 107.6 percent compared to 130 percent in December 1999. CIE will hold its ordinary general assembly on March 12 to approve FY2000 financial statements and the distribution of profits.
The Holding Company for Chemical Industries announced that National Cement (NCEM.CA) would be privatized before end of June 2001. Eng.Adel Al Mozy, Chairman of the Holding Company reported that some international groups of investors have shown interest in the company, including Lafarge. However, the HC has not yet received bids. It is worth noting that 98 percent of NCEM is owned by the HC and the company’s annual production ranges between 2.5 and 3 million tons/year.
Egyptian Contracting –Mokhtar Ibrahim (ECMI.CA) will hold its ordinary general assembly on February 24 to approve its estimated budget for FY2000/2001.
East Delta Mills (EDFM.CA) is planning to produce equipment and spare parts for milling companies in cooperation with a French company. EAST’s options include construction of a new plant in Ismailia or an exclusive agency agreement with the French company.
Olympic Group Financial Investments (OLGR.CA) has established a new company with a capital of LE250 million. The company's main function will be to augment Delta Industries –IDEAL (IDEA.CA)’s total production capacity and output.
The Holding Company for Metallurgical Industries announced the sale of 90 percent of Egypt gypsum to Egyptian –French consortium in a deal valued at LE93 million. The sale concluded as BPB of France purchased 45 percent and Arab united company 45 percent while OCI (OCIC.CA) purchased 0.05 percent of the French party stake.
In a seminar organized by the economic committee of the jounalists’ syndicate, economists warned of the contractionary repercussions of the new forex rules on domestic liquidity. They called for a reduction in the 15 percent reserve ratio for domestic deposits, establishment of a deposit insurance body and the merger of small banks to improve capital adequacy. On a related note, Prime Minister Atef Ebeid announced that he will meet soon with bank unions to discuss consolidation in the banking industry in an effort to strengthen smaller banks and to foster a sound financial system.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)