Market report
The strong start of the week ending 24 April subsided in the mid-week transactions due to a profit taking spree. The market, however, ended the week in the black thanks to heavy buying on small caps on 23 and 24 April.
The overall market transactions came at LE13 billion with transactions executed by foreigners, which were net buyers, counting for 16.6 per cent of this figure.
In other news, the People's Assembly approved in principle amendments introduced to the capital market law. The amendments prevent any individual who has access to the financial positions of listed companies to make any transactions on the company's shares, or to exchange information prior to the company's public disclosure. Another amendment was the reduction of the minimum par value of shares of listed companies from LE1 to LE0.1 per share, to attract more retail investors to the market.
The strong start of the week ending 24 April subsided in the mid-week transactions due to a profit taking spree. The market, however, ended the week in the black thanks to heavy buying on small caps on 23 and 24 April.
The overall market transactions came at LE13 billion with transactions executed by foreigners, which were net buyers, counting for 16.6 per cent of this figure.
In other news, the People's Assembly approved in principle amendments introduced to the capital market law. The amendments prevent any individual who has access to the financial positions of listed companies to make any transactions on the company's shares, or to exchange information prior to the company's public disclosure. Another amendment was the reduction of the minimum par value of shares of listed companies from LE1 to LE0.1 per share, to attract more retail investors to the market.
The strong start of the week ending 24 April subsided in the mid-week transactions due to a profit taking spree. The market, however, ended the week in the black thanks to heavy buying on small caps on 23 and 24 April.
The overall market transactions came at LE13 billion with transactions executed by foreigners, which were net buyers, counting for 16.6 per cent of this figure.
In other news, the People's Assembly approved in principle amendments introduced to the capital market law. The amendments prevent any individual who has access to the financial positions of listed companies to make any transactions on the company's shares, or to exchange information prior to the company's public disclosure. Another amendment was the reduction of the minimum par value of shares of listed companies from LE1 to LE0.1 per share, to attract more retail investors to the market.
CITADEL CAPITAL, the leading private equity group, is seeking $2.25 billion in loans from local and foreign financial institutions to build an oil refinery in Egypt. Banks interested in participating in the syndicated loan will be able to subscribe by the beginning of June. Among local banks, only Commercial International Bank (CIB) has so far expressed interest in subscribing to the remaining uncovered portion of the loan. The refinery is designed to produce high quality diesel and gasoline.
Citadel was formed in 2003 and is currently managing more than $7 billion in investments in different sectors covering oil, glass industries, food industries and cement. At the end of 2007, the company increased its capital by LE456 million, and is planning to launch an initial public offering (IPO) later this year.
ORASCOM HOTELS AND DEVELOPMENT (OHD)'s revenues increased by 120 per cent to reach LE1.896 billion in 2007, up from LE862 million in the previous year. Sales in the company's hotel segment grew 68 per cent to represent 43 per cent of total revenues. Meanwhile, real estate and land revenues grew 216 per cent to account for 37 per cent of total revenue. OHD's consolidated net profit after minority doubled to LE401 million in 2007.
CAIRO MEDICAL TOWER LAB (Al-Borg), Egypt's largest medical laboratory, was partially bought up by the UAE-based private equity firm Abraaj Capital. The latter paid LE773.3 million through a tender offer to buy 76 per cent of Al-Borg, at a value of LE225 per share. This is 80.4 per cent higher than the stock's average trading price for the six months ending 3 April 2008, which averaged LE124.7.
Earlier this month, Abraaj offered to buy 100 per cent of Al-Borg's 4.5 million shares, with a minimum of 51 per cent, which puts the company's value at LE1.0125 billion. Al-Borg has around 60 local branches in Egypt, in addition to presence in Saudi Arabia and United Arab Emirates.
INDUSTRIAL DEVELOPMENT BANK OF EGYPT shareholders approved the merger of this state-owned bank with another government-owned, namely the Egyptian Workers Bank. The latter had no other option but to merge to comply with banking sector regulations introduced in 2005, stipulating commercial banks to raise their paid-in capital to a minimum of LE500 million.
ORASCOM TELECOM HOLDING (OTH)'s majority 53.5 per cent owner, Weather Investments, said it will sell part of its stake in the company through a tender announced last week to buy back its treasury shares. However, Weather Investment said it will keep its holdings over 50 per cent of OTH's equity. OTH is buying back 106 million shares at LE83 per share. Chairman of both companies, Naguib Sawiris, said that Weather will use the proceeds to settle its outstanding debt.
In another development, OTH's general meeting approved the distribution of cash dividend of LE1 per share.
ETISALAT MISR, Egypt's newest mobile network operator, decided to terminate the promotional offer it launched two weeks ago due to the increased pressure it added on the network. According to the offer, the company slashed the tariff of calls between its own subscribers to LE0.2 per minute, and gave its subscribers 119 free minutes for on-net calls each day.
MARIDIVE AND OIL SERVICES COMPANY's private placement was covered 31.2 times, at a price of $3.7 per share. The subscription ratio in the company's public offering which ended 30 April was not revealed until the newspaper went to press.
The IPO is priced at $3.52, and both offerings are expected to secure $240-280 million for the oil services company to be used to finance expansionary plans. The company will allocate 30 per cent of its equity to be free floated on the Egyptian Stock Exchange.
Compiled by Sherine Abdel-Razek
Al-Ahram Weekly Online : Located at: http://weekly.ahram.org.eg/2008/895/ec3.htm