Briefs

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Bank of Alexandria shortlist

THE SHORTLIST of bidders interested in the acquisition of the Bank of Alexandria (BA) is scheduled to be announced this week. Nine local, regional and international banks met a 28 April deadline for submitting offers to purchase 75-80 per cent of the bank's total shares. The shortlist is expected to include up to six banks which will proceed to undertake due diligence, and submit their preliminary financial offers to the Central Bank of Egypt.

BA is 100 per cent owned by the Egyptian government, and Citigroup Corporate and Investment Banking is advising the Ministry of Investment on the sale. Five per cent of the bank's shares will be sold to the bank's employees, while the remaining shares will be sold by way of initial public offering on the Cairo and Alexandria Stock Exchange (CASE) after the strategic sale is completed.

The Bank of Alexandria has a network of 188 branches and outlets in Egypt. On 28 February 2006, BA owned total assets of LE39.8 billion, customer loans of LE7.9 billion, customer deposits of LE30.7 billion and shareholders' equity of LE4.6 billion.

MobiNil going strong

THE EGYPTIAN Company for Mobile Services (ECMS) reported a 14 per cent increase in revenues during the first half of 2006 to reach LE2.912 million, compared with LE2.55 billion in the first half of 2005. The company also reported a 40 per cent increase in the number of subscribers from 5.2 million in June, 2005 to 7.2 million in June, 2006. This is a 51 per cent market share.

However, net profits came at LE657 million during the same period, three per cent lower than the same period the year before. This is due to the fact that more than 99 per cent of the growth in subscribers was in the prepaid plan, resulting in around a 27 per cent decline in the Average Revenue Per User (ARPU).

$500 million for reform

THE AFRICAN Development Bank (ADB) this week announced that it has approved a loan of $500 million to support the structural and financial reforms initiated by the government. The overriding objective of the government's financial sector reform programme is to develop a market-based, efficient, competitive and sound financial system that will better serve Egypt's development and growth plans.

The cost of the programme is estimated at LE50 billion, and the government plans to finance it from privatisation proceeds, budget support grants and loans, debt instruments, and direct and indirect resources.

The ADB loan will support activities aimed at increasing private sector participation in the financial sector, restructuring state-owned banks and strengthening the regulatory and supervisory capabilities of financial sector regulatory agencies. It will also be used to help restructure the insurance industry and reduce the state's dominance there through privatisation.

Since it began its operations in Egypt in 1974, ADB has financed around 48 projects worth some $2.2 billion

Suez Steel on sale

SOME 21 companies, nine of which are Egyptian, have so far purchased information booklet for the sale of 82.1 per cent of the Suez Steel Company. Banque du Caire is selling its stake of 78.4 per cent, equivalent to 1.1 million shares, while Misr Insurance Company is selling its 3.7 per cent stake. The deadline for offers is 10 August.

Suez Steel Company produces 600,000 tonnes of billets a year and is the only company selling billets on the local market.