Eastern Company hikes cigarette prices for the fourth time this year. PLUS: News from Palm Hills, Misr Petroleum, GASC
RETAIL- Eastern Company hikes prices for the fourth time this year: EGX-listed tobacco giant Eastern Company on Tuesday hiked prices of its cigarettes by up to EGP 5, after the company’s board approved the decision, according to a statement seen by EnterpriseAM. The price of all its 20-cigarette packs, including Cleopatra, now stands at EGP 38.75, while its higher-end Viceroy and Pall Mall now sell for EGP 60 a pack. The Box 10 — the pack including 10 cigarettes — now costs EGP 27. This marks the fourth hike the company imposed in 2024, following the latest hike implemented in July to comply with the Universal Health Ins. Law, and two other hikes in April and February.(Tap or click the headline above to read this story with all of the links to our background as well as external sources.)The reason: The increase came in response to the Finance Ministry enacting the law that allows companies to raise prices by 12% annually without moving into a higher per-pack tax bracket, the head of the Federation of Egyptian Industries’ tobacco division, Ibrahim Imbaby, told EnterpriseAM. Eastern attributed the increase to a weakening EGP, higher input costs, and higher transport costs.M&A-#1- PHD purchases stake in Makor Hotels + Taaleem: Property development giant Palm Hills Developments’ (PHD) general assembly has approved the purchase of a 9.5% stake in Makor Hotels from Mansour-Maghraby Investment and Development Company in a transaction valued at just under EGP 175.6 mn, the company said in an EGX disclosure (pdf). The transaction brings PHD’s total share in Makor Hotels to 69.5%. PHD also approved a decision to purchase Palm Hills chairman and group CEO Yasseen Mansour’s entire stake in higher education outfit Taaleem in an EGP 1.9 bn transaction, the statement read. The transaction gives Palm Hills a 29.6% stake in Taaleem.#2- Al Areej International Investment further reduces stake in Eastern Company: Al Areej International Investment sold another 20 mn shares in tobacco giant Eastern Company on Monday to an undisclosed Emirati buyer at EGP 25 a pop, bringing the total transaction value to EGP 500 mn, Al Mal reports, citing sources in the know. This brings down the company’s share in Eastern Company to 2.3% from 2.99% previously, by our math.Remember: Al Areej announced on Sunday that it had sold some 9 mn shares of its stake in Eastern Company to an undisclosed buyer in an EGP 225 mn transaction, bringing the company’s stake in Eastern to 2.99% from 3.29%. The company holds another 30% stake in Eastern Company through its Global Investments Holding.ENERGY-The gov’t is looking to work with Emirati IRH to transport LNG overseas: The Oil Ministry and Emirati mining firm International Resources Holding (IRH) are in talks over the possibility of collaborating on liquefied natural gas trade and distribution in a bid to transport gas to foreign markets, according to a ministry statement. The talks, which came on the sidelines of the ADIPEC 2024 conference in Abu Dhabi, also saw the two parties exploring areas of cooperation in the mining sector.Gov’t to launch mining tender, portal: The Oil Ministry is gearing up to launch a tender for mineral exploration in several areas in the Western Desert, Oil Minister Karim Badawi said. The ministry also plans to officially launch a mining portal before the end of the year to stimulate investment in the sector following the portal’s trial launch in July.ICYMI- It was reported back in July that the government would launch an international tender for mineral exploration in Sinai, the Eastern Desert, and the Western Desert before the end of the year.MANUFACTURING-Minority stakes in two ACDIMA plants up for grabs: State-owned Arab Company for Drug Industries and Medical Appliances (ACDIMA) will offer investors stakes of up to 49% in a pharma raw materials plant with investments estimated at USD 150 mn and a glass production project with investments of at least USD 135 mn, Al Mal reports. What we know about the pharma project: First announced in September 2023, the plant will produce 28 active substances used in the pharma industry. The first phase of the project will see Acdima set up production lines for 21 pharma raw materials and is set to start operations in 2026. The second is scheduled to come online in 2030.One step closer to pharma industry localization: The company aims to dedicate 45% of production from the pharma materials plant to ACDIMA subsidiaries and 25% to local companies as part of the government’s wider drug industry localization project, ACDIMA chairperson Olfat Ghorab told Al Mal. The remainder of the plant’s production is set to be exported to neighboring countries, which Ghorab noted will assure the plant’s future profitability.LOGISTICS-Egypt’s planned ro-ro shipping line with Italy is almost here: The new ro-ro shipping line connecting Damietta Port with Italy’s Port of Trieste will begin operations on 29 November, according to a statement. The new line is part of the state’s plan to transform Egypt into a regional hub for transportation, logistics, and transit trade, as well as to open new export markets for Egyptian agricultural commodities in Italy and Europe.The government has offered a number of incentives to support the project, including an 88% reduction in port fees and lowering road tolls to a flat rate of USD 100 per truck — in lieu of USD 300 per imported truck and USD 350 per exported truck.AGRICULTURE-Phase II of the Egyptian Cotton Project: The Madbouly government and the United Nations Industrial Development Organization (UNIDO) launched the second phase of the Italian Agency for Development Cooperation-funded Egyptian Cotton Project which aims to boost sustainability across the local cotton value chain, according to a statement. The second phase of the project aims to introduce young cotton farmers to sustainable practices and employ the youth across the cotton value chain. The first phase of the project ran from 2018 to 2021.DEBT-Misr Petroleum secures EGP 10 bn syndicated loan: State-owned oil company Misr Petroleum secured an EGP 10 bn syndicated loan from nine banks, sources familiar with the matter told Al Mal. The syndicate includes the National Bank of Egypt, CIB, QNB Alahli, Arab African International Bank (AAIB), Al Ahli Bank of Kuwait, Midbank, Banque du Caire, EG Bank, and the Agricultural Bank of Egypt.ALSO WORTH NOTING- #1- El Attal is inching closer to its KSA debut: Real estate player El Attal Holding is poised to start setting up a new mixed-use project in Saudi Arabia in 1Q 2025 and is set to ink the project’s contracts this month. The project, which will span over a thousand units, is set to encompass commercial, administrative, and entertainment activities. #2- Teradix secures USD 140k to fuel Saudi expansion: Disruptech-backed eProcurement solutions startup Teradix has secured a USD 140k grant to fuel its expansion into Saudi Arabia. (Press release | pdf)#3- GASC secures 290k tons of wheat to shore up reserves: State grain buyer GASC has purchased 290k tons of Romanian, Ukrainian, and Bulgarian wheat for delivery between next month.
Wednesday, 6 November 2024