Egypt: Weekly corporate news
Orascom Telecom is currently bidding for one of four GSM licenses in Nigeria. The ministerial privatization committee approved on December 19 offering the Holding Company for Mining & Refractories’ remaining 47.8 percent stake in Helwan Cement. Arab African International Bank quadrupled its net income to $16.8 million compared to $4.8 million in its nine months FY2000 results ending September.
The ministerial privatization committee approved on December 19 offering the Holding Company for Mining & Refractories’ remaining 47.8 percent stake in Helwan Cement (HELW.CA), of which 20 percent will be offered at market price and the remaining 27.8 percent will be offered to a strategic investor within 100 days from the execution date of the first offering.
Meanwhile, Suez Cement (SUCE.CA) informed the privatization committee that the company would increase capital 25 percent through a strategic investor to improve the company’s financial structure following its acquisition of Torah Cement (TORA.CA). On a related note, the committee also approved offering 10 percent of Chemical Development Industries – SID (SIDC.CA) subject to increase to 40 percent, at LE48/share. The stake will include SID’s ESA’s stake in the company.
Arab African International Bank (ABBK.CA) quadrupled its net income to $16.8 million compared to $4.8 million in its nine-month FY2000 results ending September. This growth was achieved through slashing provisions by $13 million to $1.1 million. However, net interest income dropped 15.6 percent to $17.4 million compared to $20.6 million. Customer deposits edged up 2.4 percent to $515.4 million versus $503.6 million at the end of FY99, while loans increased 5.9 percent to $354.5 million compared to $334.9 million. Loans-to-deposits increased to 68.8 percent compared to66.5 percent at the end of FY99.
Yalla Inc., a Cairo-based regional information and telecommunication holding company startup, is currently seeking to increase its capital by $4.05 million through a private placement. The capital increase is open until December 21. Proceeds from the capital increase will finance the company’s business activities in Internet, wireless, communications and software development. Yalla Inc. is seeking a listing on the NASDAQ.
Aventis Pharma Egypt (HOEC.CA) posted 9-month FY2000 results ending September, in which the company recorded a net loss of LE3.2 million versus a net profit of LE1.7 million in the 9-month period of FY99. However, net sales rose 20.8 percent to LE152.3 million compared to LE126.1 million in the same period of FY99. COGS/Revenue deteriorated3.3 percent to 70 percent compared to 66.7 percent. The net loss is mainly attributable to the 31 percent rise in operating costs, the bulk of which were selling and marketing expenses amounting to LE33.4 million compared to LE26.5 million.
The Holding Company for Construction and Development approved the establishment of a new company International Group for Construction and Urban Development with a total investment cost of LE100 million to operate on a BOOT basis. The company will provide financing for construction and urban community projects to both the public and private sectors. The Holding Company aims to revive the construction sector by injecting more than LE7 billion annually instead of the current LE4 billion. The Holding Company along with some commercial banks are the principal investors in the new company.
The Holding Company for Housing, Tourism and Cinema has sold its 49 percent stake in Misr Gulf for Hotels and Tourism for LE429/share to United Real Estate Company of Kuwait.
Prime Securities S.A.E.