Egypt's Elsewedy Electric has announced that it has signed a share purchase agreement (SPA) to acquire 99.25% of the shares of the International Cables Company (ICC). In a statement to the Egyptian Exchange (EGX) on Saturday, Elsewedy Electric said that the value of the contract amounts to EGP 410m. It highlighted that the implementation of this purchase is conditional on the completion of some terms and conditions for this type of transaction. The company recorded a net profit of EGP 769.49m during the first quarter (Q1) of 2021, compared to profits of EGP 463.69m during Q1 of 2020, taking into account minority rights. During the period, profits for the parent company's shareholders amounted to EGP 700.06m in Q1 of 2021, compared to profits of EGP 400.07m in Q1 of 2020. Meanwhile, profits from non-controlling interests stood at about EGP 69.42m, compared to EGP 63.61m in the same quarter of last year. The company's revenues rose during that period to EGP 12.29bn, compared to revenues of EGP 10.77bn during the same period in 2020. Meanwhile, Pharos Research expects the company's performance to be healthy throughout fiscal year (FY) 2020/21. This comes on the back of a strong sales momentum across almost all segments and promising expansion plans. "We estimate a FY 2020/21 top-line of EGP51.6bn and a bottom line of EGP3.547m," Pharos Research said. The company has approved distributing a DPS of EGP 0.40/share with a DY of 4.75% and FY 2019/20 pay-out ratio of 28.57%. This is with a record date of 19 May 2021, and payment date of 23 May 2021. Pharos Research added that it expects the same payout ratio to persist in line with Elsewedy Electric's expansion plans in 2021.
