Wednesday,23 August, 2017
Current issue | Issue 1181, (23 - 29 January 2014)
Wednesday,23 August, 2017
Issue 1181, (23 - 29 January 2014)

Ahram Weekly

From the Trading Floor

TELECOM EGYPT (TE): The country’s sole fixed-line operator has been approached by two Gulf telecommunications companies to conclude a partnership to offer mobile services, an offer that has been rejected by the government which owns 80 per cent of TE.
Meanwhile, the Ministry of Communications is considering the legal situation regarding the establishment of a subsidiary company to Telecom Egypt that would provide mobile services. TE has a foot in the mobile market through its 45 per cent stake in Vodafone Egypt, the country’s largest mobile network operator according to the number of subscribers.

Citadel Capital: The private equity group with $8 billion of investments under its management has secured the approval of the Egyptian Financial Supervisory Authority (EFSA) to extend the period of subscription for increasing shares in Citadel Capital for shareholders until 13 February.
The group is increasing its capital by LE4.3 billion to reach LE8 billion through issuing both ordinary and preference shares.  
 
ORASCOM CONSTRUCTION INDUSTRIES (OCI): The company issued a statement last week denying that it had been referred to the prosecutor-general after failing to pay the second instalment of tax arrears that it owes to the Egyptian tax authorities. It said that it had not been informed of any formal complaint.
Meanwhile, a spokesman for OCI’s Amsterdam-listed parent company OCI NV told Reuters that the suspension was part of “the appeals and reinstated litigation process of OCI’s ongoing dispute with the Egyptian tax authorities.”
OCI had been due to pay an instalment of LE900 million in December as part of a settlement it reached in April that saw the company agreeing to pay LE7.1 billion. The settlement came after the authorities put a travel ban on the company’s chairman due to claims that it had not paid adequate taxes when it sold a subsidiary to the French cement company Lafarge in 2007.

GLOBAL TELECOM: Previously known as Orascom Telecom, the company is facing problems with its 60 per cent-owned subsidiary Telecel Zimbabwe, the mobile operator in Zimbabwe. The latter operator has not paid the $137 million licence-renewal fees that are due, with Telecel Zimbabwe’s 15-year licence expiring in June last year.
The firm had earlier promised to pay the renewal fees in addition to abiding by the country’s indigenisation law, which states that foreign companies should not own more than 49 per cent of any local company. Telecel Zimbabwe has more than 2.5 million customers and is the country’s second-largest operator after Econet Wireless.

GHABOUR AUTO (GB AUTO): The distributor of Hyundai and Mazda cars in Egypt has signed a distributorship agreement with Gazprom Neft-Lubricants.
Russia-based Gazprom is a global energy company involved in a wide variety of operations ranging from geological exploration to production and sales of gas and oil. Its subsidiary Gazprom Neft-Lubricants produces approximately 400 engine oil and lubricant products.
Egypt’s lubricant market is estimated at 400,000-450,000 tons and has shown four-to-five per cent annual growth. The company has been expanding into new markets and new products, tapping the Algerian and Libyan markets in 2013.
CAIRO POULTRY: The leading local producer of poultry posted a 181 per cent increase in its net profits for fiscal year 2013, recording a total of LE233 million. This was paralleled by a 13 per cent increase in sales, which came in at LE2 billion.
The decline in growth of the cost of goods sold was one of the factors that fed the increase. There was a 30.8 per cent drop in corn as well as a 1.7 per cent fall in soybean prices in 2013, according to Beltone, a market analyst. Corn and soybean prices account for 70 per cent of Cairo Poultry’s processing costs.
Cairo Poultry is set to hold its OGM and EGM on February 15 to certify the 2013 figures and discuss other matters related to the company and some of its subsidiaries’ capital increase and merger plans.

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