Egypt's corporate news: week ending January 26
The Egyptian Company for Mobile Services released FY2000 unaudited results ending December 31,2000. Net income surged 105 percent to LE289.1 million compared to LE141 million in FY99. Revenues edged up 41percent to LE2,117 million, compared to LE1,501 million. Lower cost of service and operating expenses to revenue were the most influential items causing ECMS to surpass our NI expectations of LE272.2 million. Cost of Service/Revenues steeped down to 17 percent compared to 22.5 percent in FY99. Consequently, EBITDA margin increased to 44 percent in FY2000 from 36 percent in FY99.
Interest expense was lower than expected. 3Q FY2000 recorded interest at LE195 million, while interest income was LE25.5 million. However, by the end of the year, interest was just LE112 million. The reason behind the lower interest expense was the capitalization of a tranche of interest to be amortized in the following years when tax benefits can be derived.
Orascom Telecom announced that its subsidiary SyriaTel has concluded a $20 million BOT agreement for a GSM 900MHz network in Syria. On another note, OT was unsuccessful in its bid to acquire one of three licenses offered for mobile networks in Nigeria.
Telecom Egypt’s Chairman Akil Basheer announced that TE will change the par value of its shares to LE10 from LE100 prior to its initial public offering. Mr. Basheer added that the change will be submitted to the parliament to be approved after passing the unified telecommunication law.
Chipsy International for Food Industries has offered to buy a maximum of 28,461,048 shares (99.98 percent) and a minimum of 19,072,717 shares (67 percent) of Chipsy for Food Industries at LE15.15. Offers are to be submitted from one week today until February 1. The transaction will be executed on the Cairo & Alexandria Stock Exchanges in two to three weeks following this announcement. It is worth noting that Chipsy International has the right not to execute the deal if the number of shares offered does not reach 19,072,717 (67 percent)
Lakah Group has won contracts worth LE122 million from the Ministry of Health for turkey projects at twelve public hospitals.
In a deal worth LE16.4 million, Helwan Cement’s ESA transferred the ownership of 431,547 shares to employees who opted out of the company’s ESA. The move is HELW’s first step in the process of liquidating its Employee Stock Association, which holds 5 percent equivalent to 1,252,759 of HELW’s total shares. The transaction has increased the company’s free float from 47.11 percent to 48.83 percent. This injection of new stocks into the market may place downward pressure on HELW’s stock price in the coming days. Prior to the transaction, the Cairo & Alexandria Stock Exchanges lifted the stock’s 5 percent variance limit. Accordingly, HELW closed 9.56 percent higher at LE37.60.
Misr Hotels –Hilton released 1H FY2001 results ending December, in which NPBT surged 21.5 percent to LE19.0 million compared to LE15.7 million in 1H FY2000. Meanwhile, net revenues increased 18.0 percent to LE27.1 million compared to LE22.9 million in 1H FY2000.
Orascom Hotel Holdings will hold its extraordinary general assembly on February 6 to discuss an increase in authorized capital to LE1 billion and a capital increase of a maximum LE700 million, with priority given to existing shareholders.
Industrial Engineering Enterprise Company announced FY2000 results ending June, in which net profit plunged 2.3 times to E21.7 million compared to LE50 million in FY99. Meanwhile, revenues slipped 4.3 percent to LE787.4 million versus LE821.3 million in FY99.
Prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)