Egypt partners with Google to promote 'unmatched diversity' tourism campaign    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Taiwan GDP surges on tech demand    World Bank: Global commodity prices to fall 17% by '26    Germany among EU's priciest labour markets – official data    UNFPA Egypt, Bayer sign agreement to promote reproductive health    Egypt to boost marine protection with new tech partnership    France's harmonised inflation eases slightly in April    Eygpt's El-Sherbiny directs new cities to brace for adverse weather    CBE governor meets Beijing delegation to discuss economic, financial cooperation    Egypt's investment authority GAFI hosts forum with China to link business, innovation leaders    Cabinet approves establishment of national medical tourism council to boost healthcare sector    Egypt's Gypto Pharma, US Dawa Pharmaceuticals sign strategic alliance    Egypt's Foreign Minister calls new Somali counterpart, reaffirms support    "5,000 Years of Civilizational Dialogue" theme for Korea-Egypt 30th anniversary event    Egypt's Al-Sisi, Angola's Lourenço discuss ties, African security in Cairo talks    Egypt's Al-Mashat urges lower borrowing costs, more debt swaps at UN forum    Two new recycling projects launched in Egypt with EGP 1.7bn investment    Egypt's ambassador to Palestine congratulates Al-Sheikh on new senior state role    Egypt pleads before ICJ over Israel's obligations in occupied Palestine    Sudan conflict, bilateral ties dominate talks between Al-Sisi, Al-Burhan in Cairo    Cairo's Madinaty and Katameya Dunes Golf Courses set to host 2025 Pan Arab Golf Championship from May 7-10    Egypt's Ministry of Health launches trachoma elimination campaign in 7 governorates    EHA explores strategic partnership with Türkiye's Modest Group    Between Women Filmmakers' Caravan opens 5th round of Film Consultancy Programme for Arab filmmakers    Fourth Cairo Photo Week set for May, expanding across 14 Downtown locations    Egypt's PM follows up on Julius Nyerere dam project in Tanzania    Ancient military commander's tomb unearthed in Ismailia    Egypt's FM inspects Julius Nyerere Dam project in Tanzania    Egypt's FM praises ties with Tanzania    Egypt to host global celebration for Grand Egyptian Museum opening on July 3    Ancient Egyptian royal tomb unearthed in Sohag    Egypt hosts World Aquatics Open Water Swimming World Cup in Somabay for 3rd consecutive year    Egyptian Minister praises Nile Basin consultations, voices GERD concerns    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Electrolux bets on growth in post-revolution Egypt
Sweden's Electrolux said on Monday it expected Egypt's economy, hit hard by the protests that toppled president Hosni Mubarak, would return to its pre-uprising growth levels within 18 to 24 months
Published in Ahram Online on 12 - 07 - 2011

Electrolux signed a 2.4 billion Egyptian pound ($403 million) all-cash deal on Sunday to acquire a majority stake in Egyptian appliance maker Olympic Group , the fate of which could influence broader investor sentiment towards Egypt.
Foreigners pulled money out of the Egyptian financial market and treasury bills following Mubarak's overthrow, contributing to a 4.2 percent drop in gross domestic product in the first quarter.
Egypt's economy had been expanding at about 6 percent annually before the uprising.
Asked when he expected recovery to take place in the Egyptian market, Keith McLoughlin, President and Chief Executive of Electrolux, told Reuters at a conference in Cairo: "We think it's 18-24 months."
The deal with Olympic was tentatively agreed last October and valued at 2.7 billion pounds for 60 million shares outstanding, but was delayed several times by the political turmoil in Egypt.
Electrolux bought the 52 percent stake that Olympic's parent firm Paradise Capital owned.
Electrolux said on Sunday it would offer 40.60 pounds per share and expected the deal to be completed by late July or early August.
Olympic's shares closed up 6.8 percent on Monday after the announcement of the deal. Its shares soared as much as 10 percent in early trade.
"We think there will be some turbulence, some bumps on the road, as the constitution gets established, as parliamentary and presidential elections occur. We think that's natural in the formation of democracy," McLoughlin told reporters in Cairo.
Egypt's ruling military council has set parliamentary elections for September and presidential polls by year-end.
"(In terms of) where the country's going, the demographics, the growth, the increase in middle-class ... we think the future's bright and now is exactly the right time to make this decision, this acquisition," he said.
Electrolux will pay a yearly management fee of 2.5 percent of Olympic's sales to Paradise for seven years.
EPS GAINS
McLoughlin told Reuters he expected Electrolux to consolidate earnings from Olympic from the third quarter and that the deal would boost Electrolux profits after one year.
"We see this being EPS (earnings per share) accretive in year one, after the first full year," he said.
Asked about payment terms, Hossam Mestikawi, Olympic's Chief Financial Officer, told Reuters: "It's a cash deal, they're acquiring from the market ... buying 100 percent of the firm."
Mestikawi said Electrolux would help Olympic expand into new geographic markets, particularly Europe.
"There could be a chance for some places in Europe. We will build on (Electrolux's) marketing power," Mestikawi said, adding there would be no major changes to the executive management at Olympic for at least the five coming years.
Saad el-Din Abdullah Sallam, chairman of Paradise Capital, said he expected the deal to create more job opportunities in Egypt. He said Paradise hoped to increase the number of people it employed from 15,000 to 80,000 by 2020.
Electrolux said it would sell Olympic's ownership in associated firms Namaa Real Estate Development and B-Tech for Trade and Distribution to Paradise after the deal closes.
Paradise Capital said on Monday it was ready to receive offers to buy B-Tech and Namaa.
"(We promise that) these stocks (will) remain on the bourse except if they are compulsorily de-listed," said Samer Sallam, CEO of Paradise Capital. "Secondly, if anyone presents a higher price, they are more than welcome."


Clic here to read the story from its source.