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Tuesday, 24 August 2021

EKH plans five year, USD 500 mn investment drive

Egypt Kuwait Holding (EKH) plans to invest a total of USD 500 mn over the next five years. The investment company — which is dual-listed on the Egyptian and Kuwaiti stock exchanges — is looking to deploy USD 100 mn annually starting 2022 across at least six verticals, CEO Sherif El Zayat said yesterday, according to Hapi Journal.

EKH plans to invest USD 300 mn this year and next: The investments include USD 18 mn to set up a new sulfuric acid production plant in Tenth of Ramadan City and USD 12 mn in its Sprea Misr factory complex to increase the capacity of its laminate sheets production line, El Zayat said.

EKH is also studying expanding its investments in North Sinai gas fields: The company is mulling a new USD 30 mn investment in a new concession area in North Sinai, and has proposed the acquisition to the oil ministry, El Zayat said. EKH had in March announced that it would earmark USD 75 mn for its subsidiary NSCO Investments to develop new wells at its North Sinai gas concession. As for natural gas distribution through EKH’s subsidiaries Nat Gas and Fayoum Gas, the company is expected to expand its natgas networks to more than 600k households over the next three years as part of the state’s Decent Life initiative, he added.

EKH is considering making a foray into renewable energy in Egypt and Africa, possibly in partnership with the Egyptian government, with investments of at least USD 100 mn over the next three years, according to El Zayat. Company officials also told us earlier this week that EKH plans to expand its footprint in financial services by establishing a microfinance firm called Bedayti during 4Q2021.

The news comes as shareholders can still line up to convert EKH stock to trade in EGP: Stockholders can still apply to convert the trading currency of their shares — it’s all in USD right now — to EGP through mid-September. EKH thinks the move will give more liquidity to the share, and shareholders who convert into EGP will still get dividends in USD.

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