Thndr Claps - Mergers, expansions, cost cutting, & more..

A weekly wrap-up of the most prominent news in the U.S. & Egyptian markets.?

Egypt Claps

e-finance has signed a Memorandum of Understanding (MoU) with Thiqah Business Services in Saudi Arabia.

What?

The partnership allows both companies to develop & implement digital solutions, & provide electronic payment services to the public & private sectors across Egypt & Saudi.

So What

The MoU enables e-finance to replicate its innovative services, platforms, and networks in new markets and secure sources of revenue in foreign currency.?

Now What

This partnership will act as a stepping stone for e-finance to enter other Arab and African markets.

Offers are starting to come in from strategic investors for Safi & Wataniya, according to the CEO of Egypt’s sovereign fund, adding that they could potentially make their way to the EGX, too.

What?

SFE CEO Ayman Soliman said strategic investors can offer to buy however big a stake they want since no restrictions on stake size have been made.

So What

Soliman added that he’s confident the quality of the assets being offered will attract investor interest despite the challenging global economic environment.

Now What

Stakes in Safi & Wataniya could be sold to a strategic investor within a few weeks.

EFG Hermes’ BoD voted to increase its paid-in capital by EGP 1.45 billion to bring the total to EGP 7.29 billion.

What?

The?capital increase?will come in the form of a bonus share distribution (the company transfers money from its reserves to its capital in the form of shares), where shareholders will get 1 share per 4 existing shares.

So What

Investors can expect EFG’s stock price to be reduced in the same proportion as the bonus issue, and the stock’s liquidity to increase as a result of more shares out there. Disadvantages include investors potentially not getting an immediate financial benefit, or the company forgoing a potential investment opportunity.

Now What

The decision must be approved by the company’s general assembly & the FRA in order to proceed with the capital increase.

US Claps

FedEx (NYSE:FDX) intends to combine its separate delivery companies into a single entity to cut costs.

What

The company will combine its outsourced package delivery arm and its overnight air delivery business, FedEx Ground and FedEx Express, which is expected to aid in hitting the company’s target to cut $4 billion in costs by the end of 2025.

So What

The company is under pressure to become more efficient and streamlined as the possibility of a recession coupled with a slowing e-commerce delivery market turning up the heat on FedEx.

Now What

FedEx will test the new combined service in Minneapolis, while FedEx Express is already handling FedEx Ground’s pickups and deliveries in Alaska and Hawaii, where demand is higher on air delivery.

World Wrestling Entertainment (NYSE:WWE) is set to merge with UFC, the MMA franchise owned by Endeavor Group (NYSE:EDR), to form a new company valued at $21 billion.

What

The company will be run by Endeavor CEO Ari Emanuel who is looking to utilize Endeavor’s experience in securing media deals, sponsorships, and distribution to grow the new company.

Endeavor will own 51% of the newly formed company, while WWE’s investors will own the remaining 49% stake.

Vince McMahon, who had returned to the BoD to potentially help facilitate?the sale of WWE, will retain his role in the new company.

So What

Both Endeavor and WWE’s stock dropped by more than 5% and 2% respectively, as investors were expecting an all-cash deal and were surprised by an all-stock structure for the transaction.

Now What

This deal will witness the merger of two of the biggest sports entertainment brands in the world.?

Tesla (NASDAQ:TSLA) reported total deliveries of 422,875 in Q1 2023, a 36% YoY increase compared to Q1 2022.

What

Tesla’s deliveries increased by 4% in Q1 2023 compared to Q4 2022. The company reported 412,180 deliveries for its lower-priced Model 3 sedan and Model Y crossover and 10,695 deliveries for its higher-priced Model S and X vehicles during Q1 2023.

So What

Given that Tesla does not disclose sales figures, deliveries are the closest approximation of sales.

Now What

Tesla currently sells four models, produced at two plants in the US, one in Shanghai and another outside of Berlin, with plans to build a?new factory in Mexico.