Updates on Raya’s new deal??, a new project by Madinet Masr???, a drop in Delta Sugar's profits??, & more

Acquisition of 49% of Raya Foods’ shares is expected by early 2025

London-based, Africa-focused private investment firm Helios Investment Partners — which earlier this month submitted a binding offer to purchase up to 49% of Raya Holding’s fully-owned subsidiary “Raya Foods” for USD 40 million —- is expected to complete the deal at the start of next year.

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The details:

The company, valued at USD 65 million, accounts for approximately five percent of its parent company’s revenues . Raya Holding saw its share value surge almost 13% to EGP 3.44 following news of the potential deal.

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Where is the money going?

Raya Holding CEO Ahmed Khalil told Al Arabiya that his company will allocate half of Helios ’ offer toward establishing a new factory under plans to boost exports and foreign currency revenues. Raya Foods wants to expand its production capacity from 50,000 tons to become the country’s leading frozen produce exporter

The company will also earmark a portion of the proceeds to fund expansion of another one of its subsidiaries, “Aman Consumer Finance”, the firm’s CEO Ahmed Khalil said in an interview with Asharq.

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Big plans for Aman:

Raya Holding wants to expand the foothold of its fintech subsidiary “Aman” into Saudi Arabia.? Additionally, Aman will submit an application to the Central Bank of Egypt for a digital bank license in the upcoming period to grow its domestic operations, Khalil noted.?

Madinet Masr and Zahraa Maadi partner on a new project in New Heliopolis

Zahraa Maadi Investment and Development Company has signed an agreement for a joint development project - residential/ commercial - with Madinet Masr for Housing and Development (MASR) .?

Details:

The project, spanning 41.9 feddans in New Heliopolis City, is expected to bring in revenues of EGP 11.4 billion once it is completed in six years time.?

Madinet Masr will hold a 64% stake in the project and Zahraa will hold the remainder.?

Remember, Madinet Masr has been making moves:

In July, the developer launched its Esse Residence project in Sarai, New Cairo with investments estimated at EGP 10 billion. This came after the company announced a partnership in June with Heliopolis For Housing & Development for construction of a residential project spanning 491 feddans in New Heliopolis in eastern Cairo. The project is expected to add EGP 194.67 billion in revenues over 12 years, with Madinet Masr holding a 63.5% stake in it.

And both companies have been performing well:

Madinet Masr saw its net income surge 151% YoY in the first six months of the year to EGP 1.45 billion and almost doubled its revenues during the period, recording a 96.9% YoY rise to EGP 4.47 billion.?

At the same time, Zahraa raised its net profits 114.3% YoY in 1H to EGP 250.88 million and grew its revenues 25.9% YoY during the period to EGP 338.96 million.

Delta Sugar reports 18% profit fall in 9M

Food processing company Delta Sugar saw its net income decline 18% YoY in the first nine months of the year to EGP 1,15 billion on the back of an increase in production costs, a drop in sales, and an increase in debt interests.

Revenues:

The company’s topline shrank 58.4 % YoY during the period to EGP 2.31 billion, it said in its EGX disclosure.

This follows a bad 1H:?

The company saw its net profits fall 14% YoY in the first six months of the year. Its revenues also fell 43.2% YoY during the period to EGP 2.45 billion.

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Remember, the company recently exited the EGX’s most capitalized index:

Delta sugar was among the five firms delisted in August from the EGX30 index (which comprises the most highly capitalized and liquid stocks traded on the Egyptian Exchange) after the bourse completed its semi-annual periodic review of market indices.

Rameda plans to channel EGP 2 billion toward financing new acquisitions

Tenth of Ramadan for Pharmaceutical Industries and Diagnostic Reagents (Rameda) plans to earmark EGP two billion toward financing new product acquisitions, the company’s CFO Mohamed Fayek said in an interview with Al Borsa.

Details:

The company is currently in talks to obtain 10-15 new pharmaceutical products in line with its strategy to boost exports and expand domestic operations, Fayek said.

Remember, the company has been making moves:?

Late last month, Rameda finalized its largest acquisition yet, purchasing a leading product for the treatment of type 2 diabetes. The product ranks first in terms of units sold with a 9% market share within the new generation oral antidiabetics market, which is valued at over EGP 6.7 billion.

Earlier in September, Rameda announced the establishment of its new subsidiary Glow, which will specialize in the development and production of freely priced cosmetics and cosmeceuticals.

Rameda says its new subsidiary’s operations will allow it to tap into high-growth markets and generate substantial returns with minimal capex expenditure.

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And has been growing its profits:

The company saw its share value soar to an over three-month high in August — reaching EGP 2.47 apiece —? following approval from the Egyptian Drug Authority to hike the prices of 22 of its pharma products by between 40-50%.

Rameda recorded a 26% YoY growth in net income to EGP 63.5 million in 2Q24, and saw its revenues increase by 25.4% YoY to EGP 564.9 million during the period.

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