THIS EVENING: MNHD says the price isn’t right on SODIC’s acquisition bid + Swvl buys another competitor despite cutbacks. Plus: El Sisi is in Berlin.
Good afternoon, friends. We’re still shaking off the cobwebs from a well-earned long Eid break, but the news waits for exactly no-one and is kicking into full gear.
THE BIG STORIES TODAY
MNHD says the price isn’t right on SODIC’s acquisition bid: The board of Madinet Nasr Housing and Development (MNHD) held off from giving the green light to SODIC’s offer to buy the company in an all-cash transaction valuing MNHD at some EGP 6.2 bn (USD 328 mn). SODIC’s acquisition bid does not match the “real value” of the company or its assets, MNHD’s board said in a letter (pdf) to SODIC’s majority shareholder Aldar.
Swvl is buying another competitor despite cutbacks: Nasdaq-listed mass transport app Swvl is acquiring 100% of Mexico-based transport startup Urbvan Mobility in a share-swap transaction worth some USD 28 mn based on Swvl’s current share price, Swvl CFO Youssef Salem confirmed to Enterprise. The move is the latest in a string of acquisitions by the Cairo-born startup, as it continues to pursue global expansion plans despite recently announcing major layoffs and operational cutbacks to reach profitability next year.
THE BIG STORY ABROAD
Wildfires rage across western Europe amid historic heatwave: Thousands of firefighters in Spain, Portugal, France, and Greece are continuing to battle huge wildfires that swept across tens of thousands of hectares, fanned by strong winds and hot, dry weather. Soaring temperatures have exceeded 40°C, a record for this part of the world at this time of year. In Portugal, authorities say at least 238 people have died over the past week from the heat, while thousands more have been evacuated in France and Spain.
HAPPENING NOW- President Abdel Fattah El Sisi is in Berlin to participate in the Petersberg Climate Dialogue following an invitation by German Chancellor Olaf Scholz, according to an Ittihadiya statement. The summit is one of several climate-related stops ahead of the Sharm El Sheikh-hosted COP27 in November, the statement reads. El Sisi is set to meet several top German officials, including Scholz, to discuss cooperation and issues of mutual interest.
**PSA- 6 October and Sheikh Zayed residents have full access to the Mehwar again after authorities fully reopened the crucial roadway from Sheikh Zayed to Lebanon Square, Youm7 reports. The Mehwar was closed in one direction for nearly two weeks while it was being expanded.
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Inflation unexpectedly slowed for the first time in seven months in June as food prices declined for a second month in a row, with consumer prices in urban areas rising 13.2% during the month.
- The government’s fuel pricing committee raised the price of fuel as it looks to reduce its subsidy bill amid rising global energy prices.
- “Productive discussions” with the IMF — but no agreement yet: The IMF and Egyptian officials held “productive discussions” on a fresh assistance programme during recent meetings in Cairo, the Fund and a government spokesperson said in separate statements.
*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.
In today’s issue: As public consultations continue over the state’s privatization plans, we talked to engineering and automotive industry players about what they think of the discussions and what else needs to happen in their sectors for the privatization push to play out well. The executives we spoke to highlighted the need to focus on local production and sourcing the raw materials needed, the importance of expediting the licensing process, and the role SMEs could play within the field.
🗓 CIRCLE YOUR CALENDAR-
State’s national dialogue meetings to resume on Tuesday: The board overseeing the Sisi administration’s national dialogue will hold its second meeting this week, during which it will set a schedule of debate, discuss the agenda and form subcommittees.
Need a refresher on the national dialogue? We’ve got you covered.
☀️ TOMORROW’S WEATHER- Expect a daytime high of 41°C tomorrow and a nighttime low of 25°C, according to our favorite weather app.