CI Capital analyst Ingy El-Diwany said that Raya Holding for Technology and Communications is expanding its investment portfolio to include a defensive player through debt and equity financing, according to a report from the firm published on Arab Finance. According to the note, Raya's board of directors met on Jan. 2 and approved the acquisition of a 30 percent stake in the Tenth of Ramadan for Pharmaceuticals and Diagnostic Reagents (Rameda) Company at a maximum per share value of LE 1,789.39/share. RAMEDA has 120,000 shares with a par value of LE 1,000/share. The pharmaceuticals industry in Egypt is growing annually at an average rate of 7 percent driven by population growth and growing health awareness, CI Capital said. El-Diwany added that RAMEDA has one of the largest plants in Egypt and the Middle East. The company produces a wide range of generics and under licensed products. However, the market share of the company is not significant and Raya plans to restructure RAMEDA. “We believe that it is too early for the company to enter a new investment given the sizeable projects under construction such as the Smart Buildings and the plastic recycling plant (planned to start in 2011). Total debt obligations for these new potential segments are estimated to hover around LE 160 million in 2011,” the note read. CI Capital previously gave Raya a ‘Strong Buy' recommendation.
