Pre-Trading Thoughts

Al Ahly Pharos

*Key news articles for today*

The General Authority for the Suez Canal Economic Zone (SCZone) is on course to take out a 15-year, EGP30 billion loan from a syndicate of local banks to finance the infrastructure for a number of green hydrogen projects. Part of the loan will be paid in USD to finance imported components.

The Asian Infrastructure Investment Bank is considering financing the winning consortium to develop and operate the second container terminal, “Tahya Masr 1,” in Damietta, at a value of USD100 million.

The average daily production of the Zohr natural gas field in Egypt declined by about 11% YoY in FY2022/23, according to the CEO of Petrobel, an EGPC subsidiary. He pointed out plans to start production from well No. 20 in the field next October to compensate for the natural decrease and maintain production rates.

The Administrative Capital for Urban Development, developer of the New Administrative Capital, plans to sell 5-10% of its shares on the EGX in 1H24.

Eagle Hills, the real estate company owned by Mohamed Alabbar, started negotiations with the Sovereign Fund of Egypt to acquire a government-owned real estate company.

MASR (FV: EGP5.24, OW) launched its latest project in Taj City called Origami, the first project by Minka since its acquisition by MASR. The project offers residential BUA of 0.4 million sqm.

EGTS’s court date for the 20.0 million sqm third phase Sahl Hasheesh land plot lawsuit is postponed to 23 December 2023.

Three local steel companies, namely Al Gioshy Steel, El Marakby Steel, and El Garhy Steel, are interested in acquiring government-owned Delta Steel Mill Company.

Brent, which has risen more than 30% since its March low, came close to surpassing USD95/bbl yesterday. Some crude grades are already trading above USD100/bbl.

Misr Fertilizers Production Co- Mopco stated that it did not receive any selling offer from any shareholder. This came as a response to yesterday’s news of the government’s intention to sell 15% of its stake in Mopco to ADQ.

MENA fertilizers firm Fertiglobe — a JV between Adnoc and the Sawiris-owned OCI — signed a non-binding MoU with Abu Dhabi Ports to explore opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE. The partnership also aims to enable Fertiglobe to ship and store green ammonia.

EFID (FV: EGP22.80, OW) announced that it signed two medium-term loan agreements with seven-year maturity for Fancy Food acquisition. The first loan amounts to EGP190 million to finance 50% of the acquisition, while the second loan amounts to EGP200 million to finance the investment cost needed for the new subsidiary Edita Frozen for Food Industries (previously Fancy Food).

SUGR announced in a release yesterday that it did not receive any stake sale offers, as a response to the news of the government’s interest in selling 20-25% of its stake in the company.

EFIH’s digital cards subsidiary eCards and Dubai-based fintech firm Network International signed an agreement to expand smart banking card services in the Middle East and Africa.

Reliance Lifes Sciences, an Indian company, is interested in acquiring a stake in PHAR, but no official offers have been submitted yet.

A number of Gulf investors are interested in acquiring a stake in the distressed pharma distributor United Company of Pharmacists (UCP). The company is looking to find new sources of finance to solve a growing financial crisis at the firm caused by the accumulation of large amounts of debt.

Mohamed Farid, Chairman of the Board of Directors of the Financial Regulatory Authority, said that the Authority has developed a time plan for insurance companies to implement the international standard IFRS17.