Back to the complete issue
Wednesday, 9 March 2022

Agthia still has its eye on Egypt acquisitions

UAE’s Agthia eyes more Egyptian acquisitions following more than sixfold growth in net income: Emirati state-owned investment firm ADQ Holding’s food subsidiary Agthia has around AED 1.5 bn (USD 408 mn) of “firepower” to spend on potential acquisitions in Egypt, Saudi Arabia, Pakistan and Turkey, CEO Alan Smith told Reuters, after the company reported strong growth in its 2021 financials (pdf). Agthia recorded a 535% y-o-y jump in its net income to AED 216 mn in 2021, on the back of a 49% y-o-y increase in revenues to register AED 3.1 bn. The Emirati food player acquired 75% of Atyab brand owner Ismailia Agricultural and Industrial Investments last year, following a series of Gulf acquisitions.

First Abu Dhabi Bank and Abu Dhabi Commercial Bank could soon be one entity: The two UAE lenders are close to finalizing a potential merger, Al Arabiya reported yesterday citing sources with knowledge of the matter. If the merger goes ahead, it would create the largest banking entity in the region in terms of assets with more than USD 350 bn, the newspaper said. An announcement could be made by 2Q2022 or 3Q2022 if regulators approve the merger.

Higher crude prices could translate into fewer sukuk issuances in the Gulf in 2022, Bloomberg reported, citing a report from ratings agency Moody’s. The surge in oil prices on the back of Russia’s invasion of Ukraine means the six oil-rich GCC countries won’t need as much financing through Islamic bonds, with Moody’s estimating overall issuances to fall to USD 160-170 bn from USD 181 bn last year.

Down

EGX30

10,397

-2.8% (YTD: -13.30%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

12,851

+0.3% (YTD: +13.9%)

Up

ADX

9,732

+0.6% (YTD: +14.7%)

Down

DFM

3,412

-0.2% (YTD: +6.8%)

Down

S&P 500

4,196

-0.1% (YTD: -11.3%)

Up

FTSE 100

6,964

+0.1% (YTD: -5.7%)

Up

Brent crude

USD 129.20

+4.9%

Down

Natural gas (Nymex)

USD 4.53

-6.3%

Up

Gold

USD 2,043

+2.4%

Up

BTC

USD 38,537

+1.9% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 2.8% at yesterday’s close on turnover of EGP 1.29 bn (27.1% above the 90-day average). Local investors were net buyers. The index is down 13.0% YTD.

In the green: Orascom Construction (+1.2%), EFG Hermes (+1.1%) and ADIB Egypt (+0.1%).

In the red: MM Group (-8.6%), Heliopolis Housing (-5.5%) and CIB (-4.9%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Etisalat Misr (tax ID: 235-071-579), the leading telecoms provider in Egypt; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.