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Thursday, 12 January 2023

UK-based Softline Group acquires majority stake in cloud computing company Digitech


 UK-based software firm Softline Group LTD has acquired a 51% stake in cloud computing company Digitech for EGP 262 mn, Al Borsa reports, citing Shawkat El Maraghy, managing director of Prime Securities Brokerage, which brokered the transaction. The newspaper did not specify when the transaction took place.

The parties: Softline offers software, hardware, and cloud solutions, among other services, according to its website. DigiTech is an Egyptian firm that offers a host of software solutions such as cloud storage and enterprise content management.

CORRECTION- 23 January, 2023

An earlier version of this story incorrectly reported that US-based software firm Softlight, not UK-based Softline Group Ltd, had acquired a stake in Digitech. 


Steel manufacturers hike their prices as the EGP weakens: Ezz Steel, Suez Steel, Egyptian Steel and other major manufacturers joined Beshay Steel in hiking their steel prices this week, raising them by around EGP 2.5k per ton after the latest weakening of the EGP, Al Borsa reports. The increases left steel prices at between EGP 25.5k and EGP 27.4k per ton. Steel reached a record high of EGP 30k per ton last month, before dropping to around EGP 23.2k per ton.


CIB issues fresh shares for ESOP program: CIB this week upped its issued and paid-up capital by around EGP 165 mn to nearly EGP 30 bn, distributed over 16.5 mn shares, which will be issued to employees and execs as part of its rewards program.

Banque du Caire increased its issued and paid-up capital to EGP 10 bn from EGP 5.25 bn, distributed over 2.4 bn shares, according to Ahram Gate. The state-owned bank also doubled its authorized capital to EGP 20 bn.


More Russian wheat incoming: State grain buyer GASC reportedly booked at least 60k tons of Russian wheat on Tuesday in its latest tender, traders told Reuters. The purchase came courtesy of the World Bank, which handed Egypt a USD 500 mn loan last summer to boost food security. GASC could move forward with another 60k ton purchase but it is still awaiting bid bond arrangements — which ensure compensation if shipments fall through — from the supplier.

More details soon: GASC is expected to this week announce the full quantities purchased and prices, but traders believe that it is paying some USD 337 a ton on cost and freight basis.


Contact Financial Holding wants to tap the securitization market in 1Q 2023, CEO Saeed Zaatar reportedly told Al Borsa, without providing further details. The company also wants to enter the Saudi and Emirati markets and expand in the Horn of Africa this year, he reiterated. Contact Financial closed an EGP 1.1 bn securitized bond issuance for its consumer finance arms Contact Creditech and Contact Credit late last year.


Senate housing committee greenlights building law amendments: The Senate’s Housing and Local Administration Committee gave its final approval to amendments to the 2008 Unified Building Law, which bans construction outside authorized areas in cities, villages and districts, Al Mal reports. The five-article bill will now go up for discussion and a vote in the Senate’s General Assembly before it is referred to the House.


Fintech Egypt has announced the launch of its digital academy: The CBE-backed Fintech Egypt has launched its digital academy, which will train young people in financial technology, it said in a statement (pdf) yesterday. Its six-month Innovator program will launch in 1Q 2023 and provide training on fintech, AI, open banking and e-payments.


A breather for 57357: Financially-stricken children’s cancer hospital 57357 has received some EGP 250 mn in donations in the past three weeks — enough to keep its doors open for at least three months, the National reported. The renowned hospital warned last month that it might be forced due to the economic crisis.


London-based real estate consultant Chestertons International has entered the Egyptian market through a partnership with Egypt’s Gemini for Real Estate Brokerage, according to a press release. Chestertons has offices in the UK, Europe, Africa, Asia, and the Middle East.


CIT Minister Amr Talaat is wrapping up his week-long India visit: Talaat has been working to drum up Indian investment in our CIT sector, meeting yesterday with representatives of communications company Tejas Networks, the National Payments Corporation of India (NPCI), and Tech Mahindra, according to a ministry statement. The meeting with Tech Mahindra discussed potentially doubling employee headcount at its planned first global delivery center in Egypt. The company was one of 29 multinational firms that agreed in December to up their investments in our outsourcing industry, signing up to establish the center.

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