The cancellation of Banque du Caire's sale auction overshadowed market transactions, pushing it further downwards. Uncertainty over the bank's future after the auction failed has weighed down on most banking shares traded on the market, with Commercial International Bank (CIB) shares shedding five per cent of their value and Credit Agricole Bank losing up to 15 per cent. This happened in three trading sessions following the announcement of the auction's cancellation. ORASCOM CONSTRUCTION INDUSTRIES (OCI) signed two contracts to undertake the civil works and piling installation of a new LNG facility in Algeria developed by Sonatrach, one of the world's largest natural gas exporters. The civil works construction of the facility is expected to be completed in approximately 14 months. The part related to the execution of the piling and installation works done by an OCI/TreviSpA joint venture, will take approximately 10 months. The company did not reveal the value of the two contracts. In related news, OCI will pay a LE5 per share cash dividend to its shareholders on 10 July. TALAAT MUSTAFA GROUP (TMG)'s real estate project in new Cairo, Madinaty, has posted actual sales of LE6.4 billion during the fist half of 2008. This brings the total number of units sold in Madinaty to date to 19,575 units, with a total sales value of LE16.5 billion. Moving to the international front, the group obtained the necessary permits to begin developing a mega-size full-fledged city, including various services and facilities, in the north of Riyadh, Saudi Arabia. Sales of units in the new city are to start in mid-August 2008. TMG has signed an agreement with Riyadh Bank to provide buyers with mortgage finance facilities for extended periods of up to 25 years. COMMERCIAL INTERNATIONAL BANK (CIB) is seeking the regulatory approval to acquire the 50 per cent stake it does not own in its investment banking arm, CI Capital, through buying out other shareholders. CI Capital is estimated to have a total value of LE1.54 billion. Other than CIB, shareholders in the company are the CIB Employees Fund with a 10 per cent stake, and a number of investors -- including business tycoon Naguib Sawiris -- owning the remaining 40 per cent. According to EFG-Hermes, Sawiris, who has a 16 per cent stake in the company, has already used the proceeds to purchase shares in CIB. He will remain a member of CI Capital's board, and will be a shareholder in CIB's upcoming Algerian banking venture. A CIB press release stated that the bank will secure the funding needed for the acquisition through internal sources, and not by issuing shares as previously rumoured. In 2007, CI Capital's contribution to CIB's consolidated earnings was around LE55 million, or five per cent of consolidated net profit. ORASCOM TELECOM HOLDING (OTH) revealed its new ownership structure following a recent capital decrease, with Weather Investments cornering 53.5 per cent of the company's equity. Another 45.5 per cent was freely floated and the remaining one per cent was kept as treasury shares. In related news, OTH announced that it has already monetised the receivables due from MTC-Atheer, which bought OTH's Iraqi GSM in December 2007. "The monetising transaction was arranged for the total amount of the receivables of $1.2 billion," noted a company disclosure sent to CASE. "Through this transaction, OTH received the corresponding amount up front." GHABOUR AUTO (GB) signed an agreement with the Brazilian Marcopolo bus manufacturing company to establish a bus body assembly facility in Suez. The new facility will be operated by GB Buses, a new GB subsidiary that will be 51 per cent owned by GB Auto and 49 per cent owned by Marcopolo. The cost of the project hovers at around $70 million, and will have a production capacity of 1,500 units in the first year of operation. This is earmarked to reach 8,000 units annually by 2014. Compiled by Sherine Abdel-Razek
