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June 19, 2025: Takeover almost complete

EKHOA agrees to sell its stake Delta Insurance as Wafa Assurance moves for full acquisition

Egypt Kuwait Holding (EKHOA) has agreed to sell its entire 63.39% stake in Cairo-listed Delta Insurance (DEIN) to Morocco’s Wafa Assurance, which is moving to acquire full ownership of the company. The transaction is part of Wafa’s push to expand in Egypt’s fast-growing insurance market.

Wafa — a subsidiary of Morocco’s largest lender, Attijariwafa Bank — is offering EGP 40 per share, valuing Delta Insurance at EGP 5 bn. The agreement is still subject to approval by Egypt’s Financial Regulatory Authority.

Delisting in the pipeline:

If approved, Wafa previously said it plans to take the company private. It has committed to purchase any untendered shares at the same offer price within six months of completion.

Strategic shift for Wafa:

Wafa previously competed with AXA Egypt for Delta and its life subsidiary in late 2024. AXA has since withdrawn, leaving Wafa as the sole bidder. The firm already operates in Egypt through Wafa Life Insurance Egypt and sees the acquisition as a springboard for scaling up in the local market.

Delta bounced back from a loss recently:

It’s noteworthy that DEIN posted a net profit of EGP 282.81 mn in 1Q 2025, reversing a net loss of EGP 177.73 mn in the same period of the year before. Consolidated revenues more than tripled year-over-year to EGP 341.43 mn, from EGP 102.7 mn.

CI Capital launches Egypt’s first ESG equity fund

CI Capital Asset Management, a subsidiary of CI Capital Holding for Financial Investments (EGX: CICH), has opened subscriptions for the Misr Green – Sustainability (ESG) Fund — Egypt’s first open-ended equity fund focused on sustainability-linked equities.

A first for ESG investing in Egypt:

The fund is the first of its kind to allow subscriptions through local banks, with CI Capital handling the initial offering and Bank Misr managing future purchases and redemptions.

Tracking Egypt’s ESG leaders:

It aims to mirror the performance of the EGX Sustainability Index with a minimum 90% correlation, while managing tracking error. The index includes the top 30 EGX-listed companies based on ESG criteria, covering sectors such as financial services, industrials, materials, healthcare, consumer goods, and real estate.

A step forward for sustainable finance:

This is CI Capital Asset Management’s third index-linked fund and part of its broader ESG strategy. The firm is Egypt’s largest asset manager by both number of mandates and total assets, which exceed EGP 82 bn.

The company reported net income after minority interest of EGP 345.2 mn in Q1 2025, down 65.4% YoY, according to its latest financial statement. Revenues came in at EGP 2.44 bn, compared to EGP 2.86 bn a year earlier.

SODIC begins early deliveries at Africa’s largest solar-powered housing project

Egypt’s third-largest listed real estate developer, SODIC, has begun early handovers of 108 units at VYE, its flagship residential development in New Zayed, ahead of a wider delivery of more than 1,700 units planned through 2025, the company said.

VYE is home to the largest solar-powered residential project in Africa and the second largest in the Middle East. The development is positioned as a sustainable, next-gen community.

Lifestyle components still in the pipeline include the VYE Town Centre (early 2026), the Karmell Hub (mid-2026), and a community clubhouse expected by the end of 2027.

Company’s recent performance:

Remember, the company’s net profit exceeded EGP 953 mn in Q1 , reflecting an impressive 143% y-o-y increase.

Revenues surged to EGP 2.7 bn, up from EGP 1.8 bn in the same period of 2024.

Egypt to add new West Delta gas output in July

Phase 11 of the West Delta Deep Marine concession will begin production in July, adding 100 mn cubic feet per day (mcf/d) of natural gas to Egypt’s grid, a government source told Al Arabiya Business.

Output will start from two deepwater wells: Sparrow (60 mcf/d) and Sinad (40 mcf/d). A third well is being fast-tracked for connection before the end of 3Q, with initial production estimated at 50–60 mcf/d.

The concession is operated by Burullus Gas, a joint venture between Shell Egypt, EGPC, EGAS, and Petronas. Shell and Petronas are jointly investing USD 300 mn in the project. Phase 11 follows the successful completion of Phase 10, which brought three wells online with a combined output of 160 mcf/d and 2k barrels of condensate per day.

Why this matters:

The new supply comes as Egypt grapples with fresh gas shortages. Several industrial producers are facing government-imposed gas cuts following the shutdown of Israel’s Leviathan and Karish gas fields, which disrupted imports of 800 mcf/d of gas.

To mitigate the shortfall, the government has suspended fuel deliveries to certain industrial users, increased mazut use at power plants, and secured four LNG shipments to compensate for reduced flows. Fertilizer producers including Abu Qir and MOPCO have already scaled back operations to 70% capacity, reviving fears of repeat disruptions seen last summer.

Some companies are now looking to import gas directly, while others — like Abu Qir — have announced plans to partially shift to clean energy in a bid to reduce dependency on the national grid.