PITCH| BINV to acquire OFH; Good deal for all. BINV's Board approved the acquisition of a minimum of 51% and up to 90% of the share capital of OFH through a MTO via a share swap ratio of 1 share of BINV for 56.76 shares of OFH (based on a number of 4,721,121,620 shares). OFH holds EGP700 million in cash and cash equivalents, and 29.7% of CNFN. If BINV Share is valued at EGP23.50, then OFH share is valued at EGP0.41 and implied acquisition price for CNFN is EGP3.56. As BINV assumed valuation rises, all other implied values rise as well.

The Central Bank of Egypt’s monetary policy committee will meet on Thursday, June 22, and we expect rates to remain unchanged, in light of inflation peaking this quarter and the halt to monetary tightening witnessed in the US.  

International Finance Corporation managing director Makhtar Diop is in Egypt today. Diop will sign an agreement to mobilize private-sector investment and meet with Key government officials. 

Egypt could start bartering goods such as fertilizers and natural gas with India under a wider set of trade arrangements. The proposal is part of a wider deal that could see India extend a credit line in USD to help Egypt pay for imports. 

The Supreme Investment Council is studying the inclusion of new investment incentives for investors wishing to localize the production of industrial raw materials and other feeding industries.  

Egypt’s FDI in 1H-FY22/23 recorded USD5.7 billion, +75% YoY.  

The total value of goods stuck in Egyptian ports does not exceed USD5.5 billion, after USD31.8 billion worth of goods was released YTD.  

The Masdar – Infinity – Hassan Allam consortium is selecting an advisor for the wind power project to be implemented in Egypt with a capacity of 10 gigawatts and investments of USD10 billion.

PACH bottom line in 3Q22/23 came in as a net profit of EGP6.41 million, down by 47% YoY, due to opex surpassing operating income. 9M22/23 net profit after taxes came in at EGP25.91 million. PACH is trading at FY22/23e EV/EBITDA of 17.8x and P/E of 25.4x.

A consortium led by Italy’s Mediterranean Shipping Company (MSC) won the bid to establish and operate the 250-feddan Tenth of Ramadan dry port at EGP3.5 billion.

Al Gioshy Steel plans to offer a 30% stake of its shares on EGX in 2024. 

OCDI (FV: EGP23.30, OW) is studying acquiring land or other companies, is considering acquiring land of above 300 feddans on the North Coast, and is currently not looking to expand its portfolio beyond Egypt.

ElSisi inaugurated the Tahya Misr multi-purpose terminal at the Alexandria Port to transform the Alexandria Port into a global trade and logistics hub with an annual capacity of 12-15 mn tons of goods.

Tui, Britain's largest tour operator, is nearly doubling its holidays to Egypt's Red Sea Coast next winter.