Back to the complete issue
Thursday, 12 May 2022

German fiberboard maker enters Egypt through JV with Egypt Kuwait Holding

German fiberboard producer Homann Holzwerkstoffe is acquiring a 27% stake in Egypt Kuwait Holding (EKH)’s subsidiary Global MDF Industries, EKH announced in a statement (pdf) yesterday. The transaction is part of an agreement launching a new JV between Homann Holzwerkstoffe and EKH. A company representative we reached out to yesterday declined to disclose the value of the transaction.

How it will work: EKH will sell a 16.2% stake in Global MDF to the German firm when the agreement closes. The remaining 10.8% will change hands when production begins at Global MDF subsidiary Nile Wood’s factory in Sadat City (slated for 4Q 2022). The factory will produce up to 200k cubic meters of MDF, which will be sold to the local and overseas markets, EKH CEO Sherif El Zayat said in the statement.

Tree to table: The transaction gives Homann Holzwerkstoffe a stake in Global MDF’s two other fully-owned subsidiaries, which will supply the Nile Wood factory with raw materials. “The direct access to raw materials will be a key growth driver,” said Homann Holzwerkstaffe Managing Partner Fritz Homann.

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 HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; 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; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.