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.