EZZ AL-DEKHEILA STEEL (EZDK): The local steel manufacturer posted a leap in its net profits during the first nine months of 2013 to reach LE789 million with a 219 per cent increase on the corresponding period of the previous year. On the third quarter alone, the company's sales came in at LE3.6 billion, which is 5.1 per cent higher than their level a year ago thanks to the 12 per cent increase in steel prices during the same period. However, these revenues are 15 per cent less than those recorded in the second quarter, a fact attributed by analysts to slow operations during the Ramadan and Eid holidays that occurred in the quarter. The curfew imposed this quarter impacted output across the board. Beltone financial cited the significantly weak results at the company's 55 per cent-owned Ezz Flat Steel as being the result of a lack of liquidity, one of the reasons for the decline in revenues during the third quarter. “Meanwhile, EZDK, on a standalone basis, portrayed strong performance in the light of the challenging macro environment, operating close to full utilisation and almost doubling its bottom line compared to last year,” Beltone noted. PALM HILLS: The real estate development company said that its share offering, aiming at increasing its issued capital to LE2.96 billion, was covered to 95.7 per cent. The company added that the rights issue, which lasted for a month, saw investors subscribing to LE583 million worth of shares. It now plans to request the regulator's approval to offer the remaining shares in a second phase of subscriptions. Minister of Investment Osama Saleh met with the company's chairman, Yassin Mansour, last week to discuss the latter's investment plans, according to a ministry statement. Mansour, who hails from one of Egypt's richest families with a business portfolio ranging from automobiles to retail, banking and real estate, has recently returned from London where he had been staying after the 25 January Revolution. Mansour was one of the businessmen that the former Muslim Brotherhood regime had wanted to return to Egypt after he had been accused of profiteering from his close relations with the former Mubarak regime. At the recent meeting with Saleh, the businessman discussed the problems facing his company in two of its main projects, asking the government to help in dealing with them. SIXTH OF OCTOBER DEVELOPMENT AND INVESTMENT COMPANY (SODIC): The real estate company signed a syndicated loan for LE900 million with four Egyptian banks led by the Arab African International Bank. The facility will finance SODIC West Projects, namely Allegria, Forty West, The Polygon, Westown Retail Hub, and Westown Residences. The loan facility will be divided into two tranches: the first will be used to refinance outstanding debt on SODIC West and the second to finance remaining development costs. SODIC is obliged to finalise the construction work on its West Cairo developments over three years. On a separate note, the company denied news that it had reached a settlement with the New Urban Communities Authority concerning the acquisition of land in New Cairo by its fully-owned subsidiary Sorreal. JUHAYNA FOOD INDUSTRIES: The dairy and juice producer finalised two loans last week. The first was a LE500 million credit facility from the European Bank for Reconstruction and Development to finance the expansion of its dairy and juice production facilities and upgrade its logistics and distribution network, according to the company's press release. The second was for a smaller amount, LE74 million, secured from the Commercial International Bank, which will be used to finance machinery for its yogurt subsidiary Egyptian Food Industries (Egyfood). Meanwhile, the company also received a LE79 million, 7,000 square metre building in SODIC's Polygon project to be used as its administrative headquarters. GLOBAL TELECOM HOLDING: The telecommunications giant previously known as Orascom Telecom Holding said that its Algerian subsidiary Djezzy had obtained final approval for a third-generation licence and that the company had started importing the equipment needed a month ago. Meanwhile, Djezzy is continuing with an international arbitration case against the Algerian authorities and expects a court decision in the second half of the year. Both Global Telecom and Djezzy are owned by the Russian Vimpelcom Corp., which is the world's sixth-largest telecommunications company by number of subscribers. Vimpelcom acquired Djezzy in 2011 as part of a $6 billion deal to buy the assets of Orascom Telecom. However, the transaction was overshadowed by uncertainty after the Algerian government demanded a majority stake in the business. Djezzy was the most lucrative part of Orascom's former business, and negotiations to buy the firm have been dragging on despite the fact that Vimpelcom agreed in January 2012 to sell the Algerian government a 51 per cent stake in the unit. TELECOM EGYPT (TE): The sole fixed-line operator denied rumours that the Saudi Telecommunication Company would acquire TE's stake in Vodafone Egypt (VFE), the country's biggest mobile network operator in terms of number of subscribers. TE, which is currently seeking to acquire an integrated licence that would give it the right to offer mobile services, said it had no intention of selling the 45 per cent stake it owns in Vodafone. Some analysts expected the National Telecommunications Regulatory Authority (NTRA) to ask TE to divest the stake as soon as the fourth-generation licence is offered as administrative regulations at TE prevent it from investing in two competing companies. VFE contributes almost 25 per cent to TE's revenues. Compiled by Sherine Abdel-Razek
