Egyptian investor offers to buy Alexandria Medical
An Egyptian investor has offered to buy medical equipment firm Alexandria Medical Services for LE 102.9 million ($18.5 million), the highest bid yet for the firm, the Capital Markets Authority said on Wednesday.
The authority said in a statement that investor Gamal Abdel Fattah Abdel Rahman Hamada had offered to buy all the firm's 1.4 million shares at a price of LE 73.5 per share. The move brings the number of offers for the firm to three.
The statement identified Hamada as chairman of the board of Egyptian pesticide firm Agrochem, also based in the northern coastal city of Alexandria. An Indian investor who runs a healthcare business in the United Arab Emirates, Bavaguthu Raghuram Shetty, earlier this month offered to buy the entire equity of Alexandria Medical Services for LE 100.8 million, or LE 72 per share.
Short Hills Development, a company based in the British Virgin Islands, earlier made a 100 percent takeover bid for the medical company at LE 65 a share. –Reuters
Inflation may fall on lower food prices
Inflation in Egypt is likely to fall for a fifth straight month in January as global food prices drop, the head of Egypt's statistics agency said
Falling global prices for wheat, corn, and butter will bring down prices, CAPMAS head Abu Bakr El-Gendy said in comments carried by state news agency MENA. He did not give further details.
Egypt's urban inflation fell to 18.3 percent in December 2008 from 20.3 percent in November 2008 on the back of the drop in global commodity prices.
Analysts have said the decline increases the chances that Egypt's central bank will cut interest rates at its February 12 meeting.
Inflation jumped from an annualized 6.9 percent in December 2007 to a whopping 20.9 percent in November 2008. Skyrocketing food and gasoline costs shot inflation rates to a 16-year high of 23.6 percent in the year to August 2008.
Eye on the market
Amoun Pharmaceutical Industries announced its preliminary financial results for fiscal year 2008 recording a net loss of LE 7.2 million compared to a net profit of LE 191.6 the previous year.
Giza General Contracting will distribute LE 0.60 per share as a cash dividend to shareholders of record date Feb. 9 to be distributed on Feb. 12.
Abou Kir Fertilizers declared a stock dividend of one free share for each 10 original shares to shareholders of record date Feb. 12 to be distributed on Feb. 12.
Al-Watany Bank of Egypt unveiled the annual financial statements for FY08 with net profit of LE315 million against LE243.5 million in FY07, reported Al-Mal.
Blom Bank Egypt capital increase approved
The Listing Committee held Wednesday approved the capital increase for Blom Bank Egypt, from LE 500 million to LE 750 million, the LE 250 million capital increase (representing the 9th issue) distributed over 25 million fully paid cash shares allocated to the bank's shareholders at a par value of LE 10 per share (as rights issue). Shares of this increase will be available for trading effective Feb. 1 trading session. –EGID
Abyaar to get $48.1 million finance deal
The Bank of Kuwait and the Middle East signed a memo of understanding (MOU) with property developer Abyaar for real estate financing worth KWD 14 million ($48.1 million) involving management of revenue-producing real estate, the bank said in a statement.
The Sharia-compliant agreement would be the first of its kind by a local bank during the current global economic crisis. Abyaar said the agreement would help it finance company operations and projects in both Egypt and Saudi Arabia, as well as settle short-term liabilities. –IntelliNews
Raw materials exempt from customs
The Egyptian Cabinet approved in its meeting Wednesday to exempt some raw materials and intermediary goods, which are not produced locally or have no substitutes in the local market, from customs and duties.
The new decision includes exempting some machines, tools and chemicals used for producing specific products. –Al-Alam Al-Youm
Concession for Abu Qir fields
Edison, through its controlled company Edison International SPA, Egypt’s Minister of Petroleum and the Egyptian General Petroleum Corporation (EGPC) signed a 20-year concession agreement, which can be extended for a further 10 years, for the offshore fields of Abu Qir.
Edison has paid $1.4 million as a signature bonus and has been granted exploration, production and development rights. Said concession has reserves estimated at approximately 70 billion cubic meters of gas. –Bloomberg
Novatek may begin Egypt gas exploration plans
Novatek could start prospective drilling in Egypt in late 2009 and not in 2010 as previously scheduled, the head of Russia's largest independent natural gas producer said on Thursday.
"We said earlier that we had to start drilling in 2010. But if we receive seismic interpretation data soon enough, we could start drilling at the end of 2009. Anyway, drilling must be launched no later than early 2010," Leonid Mikhelson said on the sidelines of the World Economic Forum in Davos.
In September 2007, Novatek bought a 50 percent stake in a concession agreement for the exploration and development of the Al-Arish offshore deposit in Egypt from Tharwa Petroleum S.A.E.
The agreement provides for a minimum exploration period of four years, which will include geophysical studies and the drilling of two wells. –RIA Novosti
