Cor­po­rate News

Business monthly (Egypt) - - MARKET WATCH -

AMOC seeks Axen’s help to boost pro­duc­tion

Alexan­dria Min­eral Oils Co. (AMOC) is look­ing to con­duct tech­ni­cal stud­ies to in­crease its pro­duc­tion with the as­sis­tance of Ax­ens France, with which it ex­pects to sign an agree­ment within a month, sub­ject to the board of di­rec­tors ap­proval. Mean­while, the Egyp­tian gov­ern­ment is con­sid­er­ing the sale of an ad­di­tional 20-per­cent stake of the firm dur­ing the sec­ond quar­ter of 2017. This is part of a pro­gram to raise $10 bil­lion in five years by float­ing stakes in state-owned com­pa­nies, in­clud­ing an ini­tial pub­lic of­fer­ing of 20 per­cent of Enppi (En­gi­neer­ing for the Petroleum and Process In­dus­tries).

EFIC and Abu Qir study­ing new fer­til­izer projects

Egyp­tian Fi­nan­cial & In­dus­trial Co. (EFIC) and Abu Qir Fer­til­iz­ers (ABUK) are cur­rently study­ing the fea­si­bil­ity of new pro­duc­tion lines. The for­mer said its potas­sium sul­fate pro­ject is still in the study phase, with its in­vest­ment not yet de­ter­mined. Mean­while, the lat­ter is con­duct­ing a fea­si­bil­ity study on a new am­mo­nium ni­trate plant. The firm prom­ises to dis­close de­tails pend­ing board ap­proval.

Obour Land to grow in 2017

Obour Land for Food In­dus­tries (OLFI) set its 2017 plan, tar­get­ing double-digit rev­enue growth of be­tween 25 and 30 per­cent. Plan­ning on pass­ing on its higher costs to con­sumers, Obour said it is plan­ning to raise prices by an av­er­age of 1518 per­cent in Q2 to at­tain a gross mar­gin of 21-23 per­cent in the first half of the year. Mean­while, the com­pany plans to com­mence pro­duc­tion at its new milk, juice and cheese pro­duc­tion lines in the sec­ond quar­ter. The firm is ne­go­ti­at­ing to se­cure credit fa­cil­i­ties worth LE 300 mil­lion to fi­nance its work­ing capital needs and ex­pand its 201-ve­hi­cle fleet by 6070 with a capital ex­pen­di­ture of LE 20 mil­lion, fi­nanced through leas­ing.

Qalaa Hold­ing pon­ders the sale of Rift Val­ley Rail­ways

Qalaa Hold­ings (CCAP) con­firmed that it is in pre­lim­i­nary dis­cus­sions with sev­eral prospec­tive lo­cal and in­ter­na­tional in­vestors to sell its stake in Rift Val­ley Rail­ways (RVR), the na­tional rail­way of Kenya and Uganda. RVR, in which Qalaa owns a 73.76-per­cent in­di­rect stake, has been clas­si­fied as a dis­con­tin­ued op­er­a­tion since the first quar­ter of 2016. A Nairobi-based news­pa­per re­ported that a Kenyan con­sor­tium plans to in­vest $133 mil­lion to ac­quire an 80-per­cent stake in RVR.

Banque du Caire to go pub­lic this spring

Banque du Caire, Egypt’s third largest pub­lic-sec­tor bank, is sched­uled to float shares to the pub­lic in April or May. Banque Misr, its par­ent com­pany, will main­tain a 51-per­cent stake in the bank af­ter the IPO.

Elsewedy Elec­tric wins bid from EETC

Elsewedy Elec­tric’s (SWDY) sub­sidiary won a bid from the Egyp­tian Elec­tric­ity Trans­mis­sion Com­pany (EETC) for over­head trans­mis­sion lines on an EPC (en­gi­neer­ing, pro­cure­ment, and con­struc­tion) ba­sis. The 356-kilo­me­ter long 500 KV trans­mis­sion lines will be built within six months from the sign­ing date, af­ter which the firm is set to an­nounce the con­tract value.

EFG Her­mes ex­pands into so­lar

EFG Her­mes Hold­ing (HRHO) is bet­ting on re­new­able en­ergy. Its plat­form com­pany, Vor­tex, agreed to buy a port­fo­lio of so­lar-power as­sets in the United King­dom for £470 mil­lion (around $580 mil­lion) from Sun Edi­son’s Ter­raForm Power. The port­fo­lio in­cludes 24 so­lar parks with a com­bined 365 MW of power and an es­ti­mated life of around three decades. The price tag in­cludes some £300 mil­lion in debt.

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