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Monday, 19 Oct 2020

ADQ Holding is exploring a potential acquisition of Amoun Pharma for 700 MM USD


Insights MENA

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Economic Outlook

Economic Outlook

  • Egypt five-year sovereign green bonds are now listed on the London Stock Exchange (LSE). The 750 MM USD issuance which is the first of its kind in the MENA region, was almost 5x oversubscribed, fetching more than 8 BN USD in bids for the bonds, which carry a 5.2% yield.
  • The Central Bank of Egypt (CBE) will offer treasury bills (T-bills) worth 19 BN EGP (1.2 BN USD) on behalf of the Ministry of Finance. The first tranche of the T-bills will be offered through 91-day notes valued at 5 BN EGP (541.18 MM USD), while the second tranche is worth 10.5 BN EGP (668.51 MM USD) and will be offered through 266-day notes.
  • The Dabaa nuclear power plant is expected to generate returns worth 4x the amount spent on its construction. The project could make Egypt “one of the leading” countries in peaceful nuclear power once it’s fully complete. Rosatom, the Russian nuclear giant building the 4.8 GW plant, is currently preparing the site for construction through subsidiary and contractor Atomstroyexport.
  • UAE banks have increased their investments in debt securities by 3% month-on-month (MoM) or 6.3 BN AED (1.7 BN USD) to record around 276.8 BN AED (75.36 BN USD) in August 2020, according to the Central Bank of the UAE (CBUAE).
  • Saudi Arabia has increased its investments in US treasury bonds by 3% monthly in August 2020, equivalent to 5.4 BN USD. Saudi investments in US treasury bonds recorded 130 BN USD in August, the highest in five months, compared with 124.6 BN USD in July.
  • Saudi Arabia's Consumer Price Index (CPI) increased by around 7% y-o-y in September 2020, down from an inflation rate of 6.2% in August. This change in prices is attributed to an increase in the value-added tax to 15% in July 2020 from 5%. The inflation is pressured by higher prices of the food and beverages sector with 12.6% and transport segment with 7.8%.
  • International Financial Advisors (IFA) has repaid 3 MM KWD (9.8 MM USD) as the first installment in a loan amounting to 98 MM KWD (81.9 MM USD). The completion of the first payment as agreed in Q4-2020 will result in a profit deduction of 18.98 MM KWD (62 MM USD) as per the signed contract.
Political Events

Political Events

  • Saudi Arabia General Directorate of Passports (Jawazat) has extended the validity of final exit visas of expatriates in the country until 31, 2020 free of charge. Moreover, it has allowed its citizens and residents to perform Umrah at 75% capacity as part of its second phase of gradual resumption of the pilgrimage.
  • Egyptian President Abdel Fattah al-Sisi met Spanish foreign minister Arancha Gonzalez Laya to discuss topics including Egypt efforts to restore Libya stability and security, outcomes of the Berlin International Conference on Libya, and the Cairo Declaration.
Stock Market

Stock Market

  • The Dubai Financial Market (DFM) is celebrating the launch of its new Futures Trading Platform. The introduction of equity futures trading is in line with the DFM's strategy to diversify product offerings and attract more investments. The new platform will help investors to diversify and hedge their portfolios and benefit from equity futures leverage.
  • The Tadawul All Share Index (TASI) went down 45% or around 38.31 points to end Thursday's trading session at 8,553.79 points, keeping its downward performance for the second consecutive session. Around 533.113 million shares were traded at a total value of 11.526 BN SAR (3.07 BN USD).

Note: All values are calculated by last Thursday.

Companies Transactions

Companies Transactions

  • Google has launched ‘Grow Stronger with Google’ program to help 1 million jobseekers and local businesses in the MENA region grow their businesses by the end of 2021. The tech giant will work with Egypt’s Ministry of Youth and Sports, Saudi Arabia’s Atta Digital Initiative, and the UAE’s NAMA Women Advancement Establishment to train 300,000 students and businesses in digital marketing
  • Abu Dhabi sovereign wealth fund ADQ is exploring a potential acquisition of Bausch Health Cos.’s Egyptian drug unit, known as Amoun Pharmaceutical Co., with a price tag that could be close to 700 MM USD. The two parties have not yet worked out the details of the transaction, and Amoun is also on the market for other buyers.
  • Amanat Holdings has invested 4 MM AED (5 MM USD) in BEGiN, a US-based leading education technology company, to become BEGiN’s main strategic partner in MENA. The acquisition is Amanat’s first-ever venture capital investment, reflecting its commitment to contribute to the digitization of the education and healthcare sectors in the region.
  • Egyptians Housing and Development has sold its entire 28% stake in Odin Investment at 3.38 EGP/share in 74.81 MM EGP (4.76 MM USD) transaction. Odin Capital Group, which bought the shares, has now increased its stake in the company to 47.77% from 26.48%. Sigma Capital Securities brokered the transaction.
  • City Edge plans to issue 600 MM EGP (38.2 MM USD) in securitized bonds in Q2-2021. The securities will be backed by 200 units the company has sold in its Etapa project in Sheikh Zayed, adding that the proceeds from the offering will be used to buy more land plots for new projects.
  • Matouk Bassiouny & Hennawy (MB&H) won the International Financial Law Review’s 2020 Egyptian law firm of the year award for continuing to innovate in its business approach. MB&H was also one of several winners of the M&A transaction of the year award for their work on the milestone Uber/Careem acquisition.
  • Consumer electronics giant LG is planning on exporting over 70% of its Egypt-made washing machines and TVs over the coming years. LG has invested 50 MM USD in its Egyptian production lines and plans to increase investments to manufacture OLED TVs.
  • Al Ramz Capital, a 99% owned subsidiary of Al Ramz Corporation Investment and Development, has implemented the first Covered Short Selling (CSS) using the Stock Lending and Borrowing (SLB) facility on the Abu Dhabi Securities Exchange (ADX).
Sports and Culture

Sports and Culture

  • Egyptian duo Nour El Sherbini and Ali Farag have captured the 2020 CIB Egyptian Open, PSA World Tour Platinum trophies after they beat compatriots Nouran Gohar and Tarek Momen, respectively, in front of the iconic Great Pyramid of Giza.
  • Domus Group, in partnership with the Dubai Sports Council (DSC), has announced the launch of Dubai International Heritage Sports Exhibition & Conference (DIHSEC) which is set to be held from December 10 to 13, 2020. The four-day event is positioned as the only specialized activity featuring UAE heritage sports industry.

Dubai

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Emirates Financial Towers, DIFC, Dubai, UAE
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Tel: +9714 351 8187
info@multiplesgroup.com

Cairo

Zepter Office Building,
S5-6, Area 5, District 1, New Cairo, Egypt.
P.O Box: 11477
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Nairobi

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Dr Westlands, Nairobi, Kenya
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P.O. Box: 66488-00800

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