Egypt’s corporate news: February 9
Orascom Hotel Holdings -OHH (ORHC.CA) held its extraordinary general assembly on February 6, which approved a capital increase of a maximum of LE700 million. OHH will use the proceeds to acquire Orascom Projects and Touristic Development -OPTD (OPTD.CA) to eliminate conflict of interest. The meeting cancelled the last extraordinary general assembly's approval of a capital increase of LE70 million.
Accordingly, OHH will issue 50 million shares worth LE500 million through a stock swap of 1.3 OHH shares for 1 OPTD share. The other LE200 million will be raised through a public offering of 20 million shares with a par value of LE10/share. On another note, OHH’s Chairman Samih Sawiris stated that OHH would spin off its 47 percent stake in Al Gouna Beverages before the end of March, either partially or fully. Mr. Sawiris added that OPTD’s assets will be revalued when the merger occurs. He also stated that the company has received three bids from Al Ahram Beverages - ABC (PYBR.CA), OPTD shareholders and an-other investor.
Minister of Public Enterprise Mokhtar Khat-tab announced yesterday that the government has not received any bids for its 47.8 percent stake in Helwan Cement (HELW.CA), as the Holding Company for Metallurgical Industries has only received letters of interest. Mr. Khattab added that the sale procedures would be announced following market studies to determine the most appropriate options to finalize the transaction.
Suez Cement (SUCE.CA) will hold its extraordinary general assembly on February 24 to approve a capital increase by 10.1 million shares designated for a strategic investor. The fair value of the shares will be determined according to the company’s valuation.
Torah Cement (TORA.CA) announced 9-month FY2000 results ending September, in which NPAT recorded LE150 million while revenues amounted to LE485 million. These figures represent a return on sales (ROS) of 30.9 percent versus NPAT of the six-month transitional period ending December 1999, which amounted to LE99.9 million along with sales of LE329 million, representing a ROS of 30.4 percent. Meanwhile, COGS/Revenues improved to 62 percent from 65.2 percent, which pushed gross margin up to 38.2 percent from 34.8 percent. EBITDA margin improved to 36.4 percent up from 33 percent.
According to Al-Alam Al YoumM newspaper, Omar Al Gemei CEO of ASIC Group announced that ASIC aims to increase its stake in Sinai Cement (SCEM.CA) to 15 percent. It is worth noting that ASIC currently owns 5 percent of SCEM and provides technical management for its Sinai plant.
Misr Beni Suef Cement (MBSC.CA) announced that the company is currently negotiating with F.L. SMIDTH to invest in the company, provide technical expertise for the management of MBSC’s plant and establish a new production line with designed capacity of 1.4 million tons annually.
Misr Cement –Qena announced that its trial period for operations would start in September
2001 to be commissioned in March 2002 with a 1.4-million ton designed capacity. It is worth noting that the investment cost for Misr Cement’s first line stands at LE800 million.
Abu Kier Fertilizers (ABUK.CA) released 1H FY2000 results ending December, in which NPAT advanced 66.9 percent to LE161.6 million compared to LE96.8 million in 1H FY99. Net sales rose 15.7 percent to LE439.2 million compared to LE379.5 in the same period of FY99. COGS/Revenues fell significantly to 57 percent versus 66 percent. The main reason behind the company’s NPAT growth was the surge in other income, which increased LE15.4 million to LE17.7 million versus LE2.3 million in the comparable period.
The Holding Company for Housing, Tourism and Cinema has extended the final day of bids again for the sale of EGOTH’s Amoun and Kalabsha floating hotels to February 25 in order to give more time to investors to conduct further due diligence.
Pfizer Egypt (PFIZ.CA) reported 9-month FY2000 results ending August, in which net profit slipped 51 percent to LE2.1 million compared to LE4.2 million in the first 9 months of FY99. Meanwhile, net sales edged 7.9 percent higher to LE193.3 million compared to LE179.2 million in the 9 months of FY99. COGS/Revenue increased to 88.5 percent from 85.6 percent.
Arab Drug Company –ADCO (ADCI.CA) posted 1H FY2001 results ending December, in which net sales edged up 4.6 percent to LE65.2 million compared to LE62.3million in December 2000. NPAT rose 7.6 percent to LE12.6 million compared to LE11.7 million in the same period of FY2000.
United Arab Spinning & Weaving –UNIRAB (UNAR.CA) will hold its extraordinary general assembly on February 22 to approve its capital increase and the merger with Unirab International.
Upper Egypt Contracting (UEGC.CA) held both its ordinary and extraordinary general assemblies on February 5, which did not approve distribution of a cash dividend due to a 43 percent decline in earnings to LE2.7 million. Instead, the company has decided to increase its paid-in capital from LE3 million to LE20 million and increase its authorized capital to LE60 million. The company is considering a capital increase through a stock dividend and a new share issue to be announced at a later date.
Heliopolis Housing & Development (HELI. CA) released 1H FY2001 results ending December, in which NPAT declined 27 percent to LE17.5 million compared to LE24 million in 1H FY2000. Revenues retreated 40 percent to LE23.1 million versus LE38.6 million in the comparable period of FY2000.
Prime Securities S.A.E.
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