Egypt’s week’s corporate news
ABC announced an agreement to acquire 100 percent of the shares of its local competitor El Gouna Beverages from parent company Orascom for Projects and Touristic Development –OPTD (OPTD.CA) for LE255 million. The deal will be financed by LE215 million in cash and assumption of LE40 million of El Gouna’s accumulated debt. ABC will secure a five-year LE-denominated syndicated term loan led by Citibank to finance the transaction. ABC will inherit El Gouna’s 15 percent and 40 percent market shares for alcoholic beer and wine, respectively, as well as a significant market share for locally labeled traditional spirits. El Gouna’s assets include a state-of-the-art distillery and 150,000 hectoliters of beer capacity. ABC also confirmed that El Gouna will operate as an independent profit center and will add to ABC’s EPS in the current year.
Egyptian American Bank –EAB (EABK. CA) announced FY2000 results ending December. Despite the notable 32 percent jump in net interest income to LE185.9 versus LE140.9 in FY99, NAI fell 30.2 percent to LE64.5 million compared to LE92.5 million in FY99. This drop was mainly attributed to the higher provisioning which almost doubled to LE87.8 million versus LE43.9 million in FY99. General and administrative expense also contributed to the decline in NAI, having increased 18 percent to LE114.2 million versus LE96.7 in FY2000. Net loans edged 4.2 percent lower to LE3.3 billion compared to LE3.4 while deposits edged up 8.9 percent to LE5 billion versus.
National Societe Generale Bank (NSGB.CA) will distribute a cash dividend (coupon #22) of LE1.00/share starting March 11.Record date is March 8. Suez Canal Bank (CANA.CA) reported FY2000 results ending December, in which NAI reached LE89.3 million, 6.6 percent lower than FY99’s LE95.6 million. Net interest income dropped 3 percent to LE171.2 million in FY2000 from LE176.2 million in FY99. The lower net interest income came on the back of 14 percent higher interest expense. Net loans jumped 9 percent to LE5,889 million, whereas customer deposits also increased by 10 percent to LE7,541 million. CANA’s suggested dividend is LE2/share. The bank will hold its ordinary general assembly on March 24 to approve FY2000 financial statements.
The ministerial privatization committee approved the sale of The Holding Company for Mining
& Refractories’ entire 47.8 percent stake of Helwan Cement (HELW.CA) through the stock exchange to a strategic investor. The sale will be executed with the condition that the interested buyer is obliged to acquire any offered shares from selling shareholders at the same price of the transaction.
aic (AICR.CA)announced that distribution of its 0.8:1 stock dividend equivalent to 16 million shares starts March 15.Record date is March 14.
Industrial Engineering & Enterprises Co - IEEC (IEEC.CA) ill distribute a cash dividend (coupon #4) of LE2.50/share starting March 15. Arab Banking Corporation –Egypt (AAFR.CA) will hold its ordinary general assembly on March 31 to approve FY2000 financial statements.
National Bank for Development –NBD (DEVE.CA) will hold its ordinary general assembly on March 24 to approve FY2000 financial statements and distribution of profits.
Mohandes Insurance (MOIN.CA) announced 1H FY2000 results, in which net in-come increased 16.7 percent to LE9.1 million compared to LE7.9 million in 1H FY99. Insurance income surged 30.5 percent to LE12.3 million versus LE9.4 million in 1H FY99.
The Holding Company for Food Industries has announced the offering of 40 percent of Starch & Yeast Company to the public .Another 10 percent stake will be offered to the company’s ESA.
Prime Securities S.A.E.
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