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Egypt is close to selling off rights to Ras Banas to KSA
Similar to the USD 35 billion Ras El Hekma agreement with the UAE, the Egyptian government is close to finalizing a deal to sell off the rights to Ras Banas on the Red Sea to Saudi Arabia, Al-Aqaria reported, citing unnamed cabinet sources. The news outlet writes investments for the project may reach USD 25 billion.
Ras Banas?
Ras Banas is described as one of the largest pristine coral reef clusters in the world. The peninsula extends 50 kilometers into the Red Sea and includes the ancient Berenice port.
The area is also located near famous tourist sites on the Red Sea including the Wadi El Gemal Nature Reserve, Al Qalaan Bay, Hankorab Beach, and Umm Sharm El Luli, which are ranked among the 10 most beautiful beaches in the world, Al-Aqaria notes.
More to come:
Prime Minister Dr. Mostafa Madbouly had previously announced that the government would not only offer Ras Banas, but has also identified 4 to 5 large areas on the Red Sea coast for investment.
Denmark’s Arla Foods submits offer to acquire Domty
Denmark’s Arla Foods announced yesterday that it has submitted a non-binding offer to purchase the majority of shares in the Arab Food Industries Company (Domty), which has two production sites in Egypt. |
The details:
Arla Foods said it made a a offer to buy the majority of Domty shares at EGP 31.48 per share, equivalent to about EGP 8.9 billion (c. USD 183 million). Arla’s offer marks a 74% premium on Domty’s share value which stood at EGP 18.03 apiece on market close yesterday, Asharq business writes.
Domty reacts to Arla’s offer:
The company’s Vice Chairman and Managing Director Mohamed El Damaty said the offer shows the extent of misvaluation Domty has been subjected to through weak valuations and a low share price over the past 8 years since it IPO’d on the EGX. Remember, the company had a bad 1H:
The local dairy giant saw its net profit recede 4.4% YoY to EGP 241 million, while its overall sales during the six months ending in June fell 43.3% YoY to 4.34 billion.
An expansion planned with or without Arla:
El Damaty noted that the board will study Arla’s offer, but in all cases his company has a local expansion strategy mapped out that will see it increase its production lines and acquire new land to expand its operations. |
The International Finance Corporation has extended Orascom Development a USD 155 million (over EGP 7.52 billion) to help it refinance existing debt and finance its expansion plans. |
The details:
The new loan includes a grace period of two and a half years and a repayment period of 8.5 years, with repayments commencing in the second half of 2027.
The company will channel a significant portion of the funds to expand its hotel operations in El Gouna, it said in a statement to the EGX. What they said:
“This proactive refinancing reduces our cost of capital and strengthens our liquidity. The lower credit spreads achieved through this deal will improve our free cash flow and support our overall business strategy while maintaining a net debt to Adjusted EBITDA of less than 0.4x” Group CFO Ashraf Nessim noted. The company made historic profits in Q2:
Orascom raised its net profits 209.8% YoY to EGP 1.9 billion in Q2 2024, marking the group’s most profitable quarter to date. The company’s revenues also surged 86.4% YoY during the period to EGP 6 billion.
Remember:
ORHD was among the five firms delisted at the start of the month from the EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange) after the bourse completed its semi-annual periodic review of market indices.
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