M&A- UAE-based Nas Investments Holding submitted a mandatory tender offer to acquire an additional 57.5% stake in EGX-listed fertilizers player EgyFert, according to a statement (pdf). The move would bring Nas’ total holding in the company to 90% through the acquisition of an additional 5.5 mn shares. If Nas hits its acquisition target, the total transaction would be valued at EGP 522.5 mn, with Nas paying EGP 95.0 per EgyFert share. Nas did not put forward a minimum acceptance threshold.Market reax: Shares rose 1.7% by the end of trading on the EGX yesterday, settling at a share price of EGP 95.65 — marginally above Nas’ offer price.REAL ESTATE-Heliopolis Housing and Development will set up a EGP 2 bn residential complex in New Heliopolis, CEO Sameh El Sayed told Al Mal (watch, runtime: 1:28:21). The project is expected to rake in EGP 4 bn in sales, he said. Further developments in New Heliopolis are in the cards, with El Sayed earmarking EGP 3 bn for infrastructure investments over the next 4-5 years. The state-owned real estate company previously partnered with Madinet Masr and Sodic on developments in New Heliopolis. RENEWABLES-China’s JA Solar will supply 1.25 GW worth of solar panels for AMEA Power’s Abydos 2 project, under an agreement with project builder China Energy Engineering Corporation, the solar panel manufacturer said in a statement. No details about the cost of the agreement were disclosed.Abydos 2? AMEA Power inked agreements last September to develop the 1 GW facility with a 600 MWh battery energy storage system located in Aswan’s Benban. The project will see investments of USD 850 mn and offset 782.3k tons of CO2 emissions and powering about 300k households.EXPANSION-Local dairy products producer Healthy will set up two factories in Saudi Arabia next year — one in Jeddah and one in Riyadh — in partnership with Saudi investors, the company’s general manager told Al Mal. Healthy will hold 49% of the plants, while the Saudi side will own a 51% majority stake. Output from the plans will be divided between exports and meeting local demand in the Kingdom.ENERGY-#1- Elsewedy Electric reached financial close on its 50MW/100MWh battery energy storage system project in Greece, according to a statement (pdf). The funding came in a mix of loans and grants — a EUR 10 mn state-aid grant, a EUR 5.5 mn loan from the EU’s Recovery and Resilience Fund, and a EUR 10 mn non-recourse project finance loan from the National Bank of Greece. The company also secured a 10-year contract for difference to “ensure a stable revenue stream.” What they said: “This project represents a significant step forward for Elsewedy Electric as we grow our renewable energy portfolio and assist Greece in its pursuit of a sustainable energy future," Corporate Investment Director Omar Foda said.#2- Misr Petroleum will establish and revamp 70 fueling and service stations nationwide in FY 2025-2026, building on the 33 stations upgraded in 2H 2024, Misr Petroleum Chairman Mohamed Maged Bakheet said during a general assembly meeting attended by Oil Minister Karim Badawi, a ministry statement reads. Misr Petroleum is also ramping up safety with a new risk management department and plans to roll out a digital tracking system for its fuel transport fleet in collaboration with an unnamed international firm, Bakheet said. INVESTMENT-Private equity outfit Ezdehar Management is looking to invest up to USD 100 mn in acquisitions this year, Managing Director Emad Barsoum told Al Mal, with the company particularly focused on the retail, food manufacturing, and technology sectors. Up to USD 30 mn will be available for each investment, though the company is also studying investments of more than USD 100 mn that would be partially funded by investments from Ezdehar’s main shareholders.MANUFACTURING-Robbiki Leather City has fully allocated all 43 ready-made factories offered up in its first offering, with the selected applicants to be notified in due course before the results of the offering are made public on the Egypt Industrial Digital Platform, according to a Transport Ministry statement. A second offering of factories at the leather manufacturing initiative will soon be announced, the statement added.

Ezdehar now fully owns Zahran Market: Private equity outfit Ezdehar Management has purchased the remaining 40% stake of supermarket chain Zahran Market, bringing its total stake up to 100%, the company said in a press release (pdf). The company did not disclose the value of the transaction.Remember: Ezdehar initially acquired a 60% stake in Zahran Market back in 2022 through its Mid-Cap Fund II (EMF II). While the value of the transaction wasn’t disclosed at the time, the firm had said that it was looking to write tickets in the USD 5-30 mn range through the fund.Zahran has grown over the last few years: Zahran Market now operates 20 branches in 10 governorates across Egypt, up from 16 branches in seven governorates back in 2022. The company also holds a “unique presence in underserved regions such as the Delta and the North Coast,” the statement said.What they said: “Over the past two years, Ezdehar has worked closely with the Zahran family to modernize the company’s operations, enhance its management systems, and expand its market presence. This milestone represents not just the culmination of a successful collaboration but also our belief in the long-term potential in Egypt’s retail sector,” Ezdehar co-founder Amr El Salanekly said.Advisors: Compass Capital acted as the exclusive sell-side advisor to Zahran Market, Matouk Bassiouny and Hennawy Advocates & Legal Consultants provided legal counsel, and ADSERO (Ragy Soliman and Partners) Advocates and Legal Consultants provided legal advice to Ezdehar.

RENEWABLES- Cemex inks agreement to operate Assuit WtE facility: Cemex through its Regenera arm will process over 7k tons of municipal solid waste monthly into alternative fuel and organic fertilizer — its second waste-to-energy (WtE) project in the country — under an agreement inked with Assuit Governorate, Al Mal reports, citing a company statement. No further details of the project were revealed.Not Cemex’s first WtE rodeo: Cemex took steps to establish its first waste conversion facility in Gharbia Governorate back in May, with the company signing a partnership agreement to manage and operate a non-hazardous waste recycling and processing plant in El Mahalla El Kubra.Remember: We heard in August that the government is set to sign contracts collectively worth up to USD 1.2 bn with eight local-foreign consortiums to produce a total of 1.7 bn Kw/h of electricity from municipal solid waste across a number of governorates, Waste Management Regulatory Authority consultant Khaled Elfarra recently told Enterprise.INVESTMENT-Look out for some big ticket investments coming our way from Ezdehar: Egypt-based private equity firm Ezdehar Management plans to invest USD 100 mn over the coming two years through acquisitions in the retail, industrial, and export-heavy sector, Managing Director Emad Barsoum told Asharq Business. The investments will come from its Ezdehar Egypt Mid-Cap Fund II, which counts the European Bank for Reconstruction and Development, International Financing Corporation and others among its contributors.AND- Dalydress to head to the Gulf? Ezdehar-owned local clothing brand Dalydress has plans to extend to the Saudi market next year, ahead of further expansions to the rest of the GCC, Barsoum added. Ezdehar purchased above 80% stake in clothing company SETA Textiles — the company behind Dalydress and Premoda — early this year.EXPANSION-Could NeoPay expand to Egypt? New majority owners of payment services provider NeoPay, Bahrain-based asset management firm Arcapita Group Holdings and Turkish fintech firm Dgpays, want to expand its services outside the UAE and into other GCC countries, Egypt, and Pakistan, Arcapita’s Managing Director of MENA Investment Yousif Al Abdalla told Al Arabiya. The expansion could happen through M&As with firms operating in the market, forming JVs with local banks, or acquiring the necessary license to operate in the new markets, he added. Remember: Arcapita and Dgpays acquired 65% of Mashreq Bank’s payment subsidiary NeoPay earlier this month.TRANSPORT-Another phase of Cairo Metro Line 3 incoming: The National Tunnels Authority inked an MoU with a consortium led by French construction company Vinci to prepare the preliminary design and technical study for phase 4C of the Cairo Metro Line 3, according to a Transport Ministry statement. The construction includes French construction companies Vinci and Bouygues Group as well as local construction companies Arab Contractors and Orascom Construction. The new phase will extend from Heliopolis to Cairo International Airport.

INVESTMENT- #1- Infinity has an ambitious five-year investment plan for Egypt: Our friends at renewable player Infinity Power are planning to invest USD 10.5 bn in Egypt over the next five years, CEO Mohamed Mansour told Shorouk News. The company plans to finance 30% of the new investments through internal resources, with the remaining 70% sourced from bank loans, Mansour added.Wind and solar is the name of the game: The lion’s share of the planned new investments will go towards wind and solar, with USD 10 bn of the total amount set aside for new investments in renewables.Its EV charging infrastructure is also another priority: Infinity plans to invest USD 500 mn in its electric vehicle charging infrastructure in Egypt over the next five years. As a first step, Infinity will increase the number of charging points from 650 to 1k by the end of the year, serving 10k EVs. #2- British International Investment to invest up to USD 200 mn in 2024: The UK government’s British International Investment (BII) has set aside USD 100-200 mn it plans to invest in Egypt’s financial sector over 2024, whether in banks or consumer finance and payments companies, Al Mal reports, citing the development finance institution’s Egypt head Sherine Shohdy. (Tap or click the headline above to read this story with all of the links to our background as well as external sources.)Already in the works: Shohdy told the news outlet that there are several financial institutions currently being considered for financing that starts from USD 20 mn, and goes up depending on the institutions’ size.#3- Fresh USD 36 mn investments from Ezdehar into food and industry this year: Egypt-based private equity firm Ezdehar Management is in talks with six unnamed companies operating in the foodstuff sector and in industry over fresh investments totalling USD 36 mn in 2024, Managing Director Amir Mishriky told Shorouk News.Ezdehar investments in Egypt this year are already up 140% y-o-y, amounting to USD 60 mn, up from USD 25 mn in 2023, said Mishriky, explaining that “We currently have investments in nine companies with majority and minority stakes, and we will look into existing some of them next year.”CAPITAL MARKETS-Azimut secures FRA license for new investment funds e-platform: Asset manager Azimut has secured a license from the Financial Regulatory Authority (FRA) yesterday to launch Azimut’s in-the-works electronic platform for investment funds dubbed AZ Invest, Al Borsa reports. The platform allows users to invest their money in Azimut-run various investment funds via their phones and other devices.AVIATION-From Riyadh to Alamein: Saudi low-cost airline Flynas launched its first flight from Riyadh to Alamein International Airport last Wednesday, becoming the first airline in the region to host scheduled flights to Alamein, the company announced in a press release (pdf).

Ezdehar invests big in local healthtech startup: Egypt-based private equity firm Ezdehar Management has acquired a minority stake in local pharma delivery startup Yodawy through a USD 10 mn investment, Ezdehar said in a press release (pdf). The investment came through its Ezdehar Egypt Mid-Cap Fund II, which counts the European Bank for Reconstruction and Development, International Financing Corporation and others among its contributors.Where is the money going? The investment will help Yodawy grow through expanding itsclient base and tech-enabled prescription capabilities. About Yodawy: The startup’s flagship product is a pharma delivery app with a built-in AI ins.approval engine and a digitized prescription tool. After being founded in 2018, Yodawy now counts Algebra Ventures, Dubai-based Global Ventures, Delivery Hero’s VC arm, Japanese healthcare-focused fund AAIC Investment, Saudi investment group Dallah Albaraka, Lebanon’s Middle East Venture Partners (MEVP), UAE-based C-Ventures (CIB’s VC arm), and Africa-focussed P1 Ventures among its backers and raised USD 16 mn in a series B round last year.What they said: “Ezdehar’s funding and partnership at this time will be critical for us to continueto drive change and support us in our mission to reduce healthcare costs, facilitate patients’ access to services, and improve their overall experience,” Yodawy CEO Karim Khashaba said.ICYMI: Ezdehar has been keeping busy this year and has already acquired a majority stakein local clothing company SETA Textiles — the company behind clothing brands Dalydress and Premoda. Ezdehar wants to invest a total of USD 70 mn this year across various sectors that include manufacturing, healthcare, retail, technology, and others.

Good afternoon, friends, and welcome to this busy Monday afternoon. More news is starting to hit our sphere as the international media comes back to work after their weekend.Speaking of new, we launched our UAE edition this morning. Think of it as the UAE analogue to your morning read in Egypt — your essential report on business, finance, the economy, and regulation in one of the world’s most vibrant and exciting economies. EnterpriseAM UAE is produced in the United Arab Emirates and in Egypt by the same team that brings you EnterpriseAM and EnterprisePM in Egypt as well as our MENA industry reports, Enterprise Climate and Enterprise Logistics. ** Stay tuned for the launch later this month of EnterpriseAM KSA. You can tap or click here if you’d like to be added to our list for launch day.THE BIG STORY TODAY Ezdehar announces purchase of minority stake in Yodawy: Local private equity firm Ezdehar Management has acquired a minority stake in pharmacy benefits management platform Yodawy, investing some USD 10 mn into the company, Ezdehar said in a press release (pdf). Ezdehar’s primary capital investment will focus on supporting Yodawy’s growth plans through expanding its client base, tech-enabled prescription capabilities, and aiding in solidifying Yodawy’s position in the healthtech sector in Egypt and the region, the company said. THE BIG STORY ABROADCoverage of the battle for the US’ Republican party’s presidential nomination in the first nominating state is still leading the conversation in the international press this afternoon withcandidates trying to secure Iowa’s support in the final stretch of campaigning. Former President Donald Trump still holds a major lead and hopes to secure a victory tonight, putting him on track to oppose incumbent Joe Biden in the November election. The real battle is between Nikki Haley and Ron DeSantis as they fight for second place, the spot Haley currently holds. They’ll have to make up for lost time after last week’s campaign efforts were halted due to intense weather conditions, especially DeSantis who will likely face pressure to drop out of the running if he fails to move up the ranks. (Financial Times | Associated Press | Washington Post | Wall Street Journal) Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here ** CATCH UP QUICK on the top stories from today’s EnterpriseAM:As good as gold: Beltone Asset Management has been awarded the management of a newly launched gold investment fund that aims to raise EGP 10 mn by offering 100k certificates at a nominal value of EGP 100 apiece.Madbouly signals importance of industry with monthly visits to manufacturers: The prime minister’s regular meetings with manufacturers comes in a bid to draw attention to Egypt’s natural position as an export hub serving Europe, Africa, the Middle East and beyond.A grim milestone: On day 100 of the war on Gaza, Israel’s bombardment of the enclave and ground offensive has killed 24k people, injured over 60k injuries, and internally displaced over 85% of the population.☀️ TOMORROW’S WEATHER- Expect another sunny day with a high of 19°C in the afternoon and a low of 12°C later in the evening, according to our favorite weather app.

Ezdehar acquires majority stake in local apparel player: Local private equity firmEzdehar Management has purchased above 80% stake in clothing company SETA Textiles — the company behind clothing brands Dalydress and Premoda — Ezdehar Private Equity Principal Farah El Agami told Enterprise. She refused to disclose the value of the transaction. About the acquisition: The investment came through the Ezdehar Egypt Mid-Cap Fund II, which counts among its limited partners the European Bank for Reconstruction and Development, International Financing Corporation, European Investment Bank, and others, Ezdehar said in a press release (pdf). The acquisition includes a primary capital investment in SETA Textiles to aid the company’s plans to expand both in Egypt and overseas. Expansion on the horizon: On the local front, the company aims to increase its branches,expand its online reach, and diversify its products in the apparel sector, El Agami said. SETA is also looking to expand overseas — either by opening branches abroad through partnerships and franchises and through online marketplaces. The company also wants to expand its existing presence in Saudi Arabia before expanding to other Gulf nations and potentially a number of African countries, she added.The acquisition could open the door for more apparel investments: “The current macroeconomic challenges and growing demand for local brandshave made the local apparel market an attractive one for investment in general. Ezdehar could look to acquire more players in the market through SETA in the future,” El Agami told us.Ezdehar is looking to invest some USD 70 mn this year across various sectors that include manufacturing, healthcare, retail, technology, and others, El Agami said. Ezdehar will unveil more investment news “very soon,” she added.

Ezdehar to acquire Alfa Market stores: Local private equity firm Ezdehar plans to purchase up to four of Alfa Market’s stores in Cairo to expand the presence of Zahran Market, one of its portfolio companies, Managing Director Emad Barsoum told Enterprise. The firm expects to wrap up the purchase in the coming weeks, he added. Remember: Alfa Market was reported in June to be preparing to sell off some of its stores in a bid to repay mounting debts. Ezdehar moved into the retail sphere last year when it acquired a 60% stake in retail supermarket chain Zahran Market through its Mid-Cap Fund II (EMF II). Fact check: Barsoum denied a report in Al Mal which claimed the firm wants to acquire an equity stake in the troubled retailer, citing anonymous sources. SME fund still in the works: Ezdehar is preparing to launch its planned EGP 1 bn fund targeting medium-sized businesses that are struggling to secure funding in 4Q 2023 or 1Q 2024, Barsoum told us. The firm is looking into potential companies to invest in and is still in talks with investors. The company is targeting three or four investors, mostly local banks, he added.

A new Ezdehar fund to support strugglingfirms: Private equity firm Ezdehar Managementwill launch a EGP 1 bn local-currency fund targeting struggling medium-sized businesses in 3Q 2023, Managing Director Emad Barsoum was quoted as telling Al Mal. The fund is approaching major local banks and other financial institutions for investment and is in preliminary talks with Avanz Capital Management’s Avanz Manara fund, Ezdehar Managing Director Emad Barsoum told Enterprise. The new fund has between five and seven firms in its sights for investment this year, Barsoum told us, declining to name the companies. It will target stakes of 20-25% in medium-sized companies struggling with recent economic pressures including the EGP devaluation and inflation, in sectors including F&B, healthcare, ins., education, and manufacturing, he added.More where that came from? The fund could target a second close of EGP 2 bn “if market conditions allow,” Barsoum said, adding that the initial EGP 1 bn could be deployed in as quickly as six months or as long as two years depending on the economic situation.

It’s another relatively busy morning for M&A news, which remains one of the “big themes” of 2022 as private equity outfit Ezdehar moves into retail and big oil player Petronas looks to potentially offload its upstream assets in Egypt. UP FIRST- Private equity outfit Ezdehar Management has acquired a controlling 60% stake in retail supermarket chain Zahran Market through its Mid-Cap Fund II (EMF II), it said in a statement (pdf) yesterday. The acquisition, which has yet to close, will see Ezdehar support the supermarket chain’s expansion plans and develop its “management and systems,” Ezdehar’s managing director, Amir Mishriky, said. Ezdehar didn’t disclose the value of the transaction, but has previous said the fund was looking to write tickets in the USD 5-30 mn range. The fund, which reached a USD 168 mn first close in February, targets companies in growth sectors such as consumer and retail, business services, education, healthcare, pharma, F&B and manufacturing. It plans to purchase majority and minority stakes in 6-8 small to mid-cap companies. What they bought: 35-year-old Zahran Market grew out of Alexandria and now has 16 branches in seven governorates. CEO Karim Zahran has opened eight new stores in the Delta region since 2016 and has “ambitious” plans to expand across Egypt, the statement said. LPs in the fund are a who’s who of DFIs: The European Bank for Reconstruction and Development, the European Investment Bank, the International Finance Corporation, British International Investment, FMO, the Belgian Investment Company for Developing Countries and the Egyptian-American Enterprise Fund have all made commitments to the fund. ADVISORS: Compass Capital was sell-side advisor to Zahran Market (making this the firm’s fifth advisory transaction in less than two years), while Matouk Bassiouny & Hennawy provided legal counsel. PwC provided financial advice to Ezdehar and Adsero–Raji Soliman & Associates was legal counsel. CORRECTION- This story was amended on August 24, 2022 to correct Ezdehar Managing Director Amir Mishriky’s name. The original version of the story misspelled Mishriky’s first name as Amr.  IS PETRONAS SHOPPING ITS UPSTREAM ASSETS IN EGYPT? Petronas could sell its Egyptian upstream assets as it looks to offload part of its African portfolio: Malaysian oil firm Petroliam Nasional Berhad (Petronas) is inviting bids for its upstream assets in Africa — including its local concessions — in a transaction that could be worth up to USD 3 bn, Bloomberg reports, citing sources it says has knowledge of the matter. The details: The Malaysian state oil company has hired an advisor to gauge interest in its African upstream assets in Egypt, Chad, Gabon, Gambia, Senegal, and South Sudan. The assets could be sold in pieces and may interest other multinational energy firms or financial investors, the sources reportedly said. Petronas is also reportedly also considering sales of its downstream holdings across the continent. The local assets that could be up for grabs: The company with its partner Shell owns Mediterranean upstream assets including the West Delta Deep Marine (WDDM) project and the Al Fanar and North Sidi Gaber gas concessions. On the downstream side, Petronas holds a 35.5% stake in the company that owns the Idku LNG plant, among other projects. The firm has reportedly been considering an exit from all its Egyptian assets since as early as March, according to a recent report by oil and gas newsletter MEES.

Ezdehar reaches USD 168 mn first close of EMF II fund: Private equity firm Ezdehar Management has reached the first close of its Mid-Cap Fund II (EMF II), overshooting its USD 100-120 mn target to book commitments totalling USD 168 mn, the firm announced in a statement (pdf) yesterday evening. The close means that Ezdehar now has more than USD 250 mn in assets under management between its two funds, making it one of the largest Egypt-focused fund managers.About the fund: Ezdehar plans to deploy the capital by purchasing majority and minority stakes in 6-8 small to mid-cap companies with an individual ticket size of USD 5-30 mn. It will target companies in growth sectors such as consumer and retail, business services, education, healthcare, and manufacturing. Pharma and F&B firms are also on the list, Ezdehar founder and Managing Director Emad Barsoum previously told us.The IFC is the latest LP to announce a commitment, saying that it had invested USD 20 mn in the fund.It joins a number of other development finance institutions: The European Bank for Reconstruction and Development has contributed USD 25 mn, the UK’s CDC is in with USD 25 mn, the European Investment Bank has provided USD 15 mn, and Dutch development bank FMO has provided USD 20 mn. The Belgian Investment Company for Developing Countries (BIO) and the Egyptian-American Enterprise Fund have also made undisclosed commitments to the fund, Ezdehar said.What they said: “With this fund, Ezdehar was able to significantly expand its investor base to include a unique set of reputable regional and global institutions,” said Emad Barsoum, Ezdehar's founder and managing director.What’s next: Ezdehar expects to reach a final close of USD 180 mn by the end of 2022, it said in the statement.

The European Bank for Reconstruction and Development (EBRD) will be a limited partner in Ezdehar’s Egypt Mid-Cap Fund II, joining the first close of the fund with a USD 25 mn commitment, the DFI announced yesterday. The fund has a target size of USD 150 mn. Private equity outfit Ezdehar founder and Managing Director Emad Barsoum told us last month that the fund expects to reach its first close by November, with a second and final close likely to take place in 1Q2022.Ezdehar had originally targeted a USD 200 mn fund with two closes of about USD 100 mn each. The new fund will focus on manufacturing, pharma, healthcare, consumer goods, F&B and education, Barsoum previously told us.Among the LPs: Besides the EBRD, Naguib Sawiris has made a commitment of USD 20 mn, the UK’s CDC is in with USD 25 mn, and the European Investment Bank has committed USD 15 mn. Other potential LPs include the Egyptian-American Enterprise Fund and the World Bank’s International Finance Corporation.

Private equity outfit Ezdehar expects to reach first close on its second fund by November, founder and Managing Director Emad Barsoum told us. The firm expects its Ezdehar Egypt Mid-Cap Fund II will reach first close with USD 100-120 mn in commitments from limited partners. A second and final close that will leave the fund with a total of USD 160-180 mn is likely to take place in 1Q2022, he said. Ezdehar had originally targeted USD 200 mn fund with two closes of about USD 100 mn each. Among the LPs: Celebrity businessman Naguib Sawiris has made a commitment for USD 20 mn, the UK’s CDC is in with USD 25 mn, and the European Investment Bank has committed USD 15 mn. Other potential investors include the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development and the World Bank’s International Finance Corporation. The new fund will focus on manufacturing, pharma, healthcare, consumer goods, F&B and education, Barsoum previously told us. He told the local press last year that the new vehicle will mainly target Egypt-based companies with single-transaction ticket sizes of USD 10-30 mn. This second fund will invest its money over a four-year period in six to eight transactions, Barsoum told Al Borsa, which broke the news. The fund will target mid-cap companies, family business and founder-led companies. Covid has set the firm’s plans back a year: The company previously planned to reach first close in late 2020, but was delayed due to covid. Ezdehar was also aiming for the second close of the fund to come before the end of the year. The firm is presently looking at the potential launch of an impact investing fund later this year or next, Barsoum previously said. Impact investing is when the folks committing capital do so in the expectation that their investment will have a positive environmental and social impact at the same time as it generates a financial return. The first fund: The company launched its first USD 100 mn investment vehicle, Ezdehar Mid-Cap Fund I, in 2016 to invest in mid-cap companies. CORRECTION- 27 September 2021: A previous version of the story incorrectly said that the fund will raise USD 160-180 mn in the second close alone. The USD 160 mn figure refers to the fund's total raised amount from both the first and second close. OTHER INVESTMENT NEWS- Six financial institutions are taking part in launching an EGP 500 mn real estate fund that will invest in commercial and administrative properties, Allianz Egypt head Ayman Hegazy told us. The fund will be up and running as soon as regulators give the go ahead, he said, without disclosing when he expected to get the green light. The six institutions: Allianz Egypt with EGP 150 mn, Banque Misr and Misr Life Ins. with EGP 100 mn each, Banque du Caire with EGP 75 mn, United Bank with EGP 40-50 mn and the Arab Contractors Pension Fund with EGP 25 mn.

It’s all quiet on the local front, ladies and gentlemen, with a dearth of worthwhile stories coming in as of dispatch. We don’t anticipate this will be the case this week (or even today), so enjoy a light issue while you can. THE BIG STORY TODAY- #1- Private equity firm Ezdehar plans to reach the first USD 100-120 mn close on its Ezdehar Egypt Mid-Cap Fund II fund by November, founder and Managing Director Emad Barsoum told us, explaining that the second and final close of the fund is expected happen within 1Q2022. The firm hopes to raise a total of USD 160-180 mn after its second close. Among the investors in this first close is Naguib Sawiris who will invest around USD 20 mn, UK’s CDC with USD 25 mn and the European Investment Bank with USD 15 mn. Other potential investors include the Egyptian-American Enterprise Fund, the European Bank for Reconstruction and Development and the World Bank’s International Finance Corporation. ^^We dive deeper into the story in tomorrow’s EnterpriseAM. DEBT WATCH- Banque Misr has confirmed that it is in the process of obtaining its largest-ever syndicated loan worth about USD 1 bn in a statement last week. 22 banks from 11 countries, including banks from the US, Europe, Middle East and Asia have signed on to provide the loan, the statement reads. Shahid Law are legal counsel to Banque Misr on the facility. REMINDERs- #1- The House of Representatives is reconvening this week after its summer recess, by decree of President Abdel Fattah El Sisi. The House’s first session is scheduled for Saturday, 2 October. The Senate will reconvene next week on Tuesday, 5 October. Look for our tracker of business-related legislation on what could potentially be on the docket this week. #2- Same-day vaccinations are now a thing from today: Anyone who has not yet registered for vaccination can go to walk-in clinics at youth centers for same-day vaccination starting this morning, with 850 vaccination centers, including 175 for travel vaccination, now operational for pre-scheduled appointments. ** CATCH UP QUICK on the other top stories from today’s EnterpriseAM: Egypt sells USD 3 bn of eurobonds: Last Thursday’s issuance was 3x oversubscribed, with Egypt receiving offers for USD 9 bn on USD-denominated bonds, with 6-, 12-, and 30-year tenors. Shell is out of the Western Desert: Cheiron and partner Cairn Energy have acquired Shell’s oil and gas assets in the Western Desert under an agreement in March that could be worth up to USD 926 mn. THE BIG STORY ABROAD- Germany’s national elections are too close to call, with the elections expected to yield a splintered parliament. Elections for Merkel’s potential successor is a three-horse race between centre-right Christian Democrats’ Armin Laschet, center-left Social Democrats’ Olaf Scholz (Merkel’s Vice Chancellor and Finance Minister)and the Greens’ Annalena Baerbock. If the elections divide the parliament, a three-way coalition is expected to take place though that isn’t the preferred option for Scholz (the front-runner). Reuters has the story. The Washington Post is warning of the far-right and how they might be inspired to take elections in their own hands or disrupt the proceedings as did Trump supporters on 6 January. It suggests that extremists are unlikely to play a role in swaying the vote but their influence is still too strong than what the polls may have implied. Who’s next up in the so-called ‘Evergrande contagion’? China’s Evergrande continues to dominate the conversation among market watchers this morning, with the discussion centering on what is the next domino to fall (so, it is all bears today). Goldman Sachs sees other Chinese property developer stocks as being the next to fall, with the Hang Seng Property Index dropping to its lowest in five years earlier this month, Bloomberg reports. Citi sees property lenders and investors as being next, including China Minsheng Banking, Ping An Bank and China Everbright Bank. Beyond property and property financing, the supply chain industries feeding them are expected to come under risk, including Asian suppliers to China’s developers, including US industries and EU mining firms. Not helping matters are continued global supply chain and logistics disruptions that have shipping firms sound the alarm. Government intervention might be necessary to solve the global supply chain turmoil, argues Takeshi Hashimoto, president of Mitsui OSK Lines, in an interview with the FT. It’s been a major debate within the industry whether government involvement is necessary, but Hashimoto believes that leaving the crisis in the hands of individual companies that will each take a different approach will cause more turmoil and “an out-of-control situation,” he said. Instead, companies should coordinate with governments to ensure that the much-needed infrastructure is in place. The logistics industry should also plan ahead in a way where investment is somewhat stable and predictable as opposed to pouring in investments at a time of a boom, Hashimoto said. Another Chinese crisis as big as Evergrande (the bear clickbait is strong today)? China could be headed for an electricity crisis that could potentially wreak as much havoc on markets as the Evergrande fiasco, according to Bloomberg. Almost half of China’s 23 provinces missed energy intensity targets set by Beijing and are now under pressure to curb power use. “With market attention now laser-focused on Evergrande and Beijing’s unprecedented curbs on the property sector, another major supply-side shock may have been underestimated or even missed,” Nomura Holding analysts said in a note. China’s electricity pressures come as Europe struggles with its own energy crisis on account of natural gas shortages. Speaking of which, Italy is feeling the bite of gas shortages: Italy’s government has warned that gas prices might increase 40% over the next three months, reports the Financial Times. Last week, Prime Minister Mario Draghi announced a EUR 3 bn package to aid lower income households and small businesses to pay their bills. The plan freezes electricity costs for 3 mn houses, waives fixed charges for some houses and businesses, and reduces VAT on natural gas to 5% instead of up to 22%. The implementation of the plan will take place in 4Q2021, but until then, businesses and families are worried that they might not be able to stay afloat. Get Enterprise daily The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox. Subscribe here 🗓 CIRCLE YOUR CALENDAR- White House National Security adviser Jake Sullivan will visit Cairo this week as part of a brief Middle East tour that will take him to Saudi Arabia and the UAE, sources with knowledge of the matter tell Axios. The deadline to register for the AUC Business School’s Private Equity Diploma is coming up on Tuesday, 28 September. ITIDA’s DevOpsDays Cairo 2021, will take place on Wednesday, 29 September. Winter opening hours for shops and restaurants will begin this Thursday, 30 September. Shops and malls will close one hour earlier at 10pm (11pm on Thursdays, Fridays and national holidays) while cafes and restaurants will shutter at midnight rather than 1am. Essential services such as grocery stories, supermarkets and pharmacies are exempt. The Cairo International Fair opens on Thursday, 30 September at the Cairo International Conference Center. It runs through 8 October. The Egypt Projects 2021 construction expo also opens on Thursday at the Egypt International Exhibition Center and wraps on Saturday, 2 October. Dubai’s Expo 2020 opens on Friday, 1 October. The event, which takes place somewhere on the planet once every five years, runs for six months and will be open seven days a week. You can learn more here. Shipping companies need to send information to the Advance Cargo Information (ACI) system starting 1 October. This includes cargo data and documents such as the commercial invoice and bill of lading, with the paperwork required to be filed at least 48 hours before the goods are shipped. PSA- Next week is a short workweek. You can expect to have a three-day weekend 7-9 October in observance of Armed Forces Day, which is on 6 October. A BIT FURTHER OUT- The first phase of the planned electric rail line between Salam City and Tenth of Ramadan City will be inaugurated at the end of October, Prime Minister Mostafa Madbouly said in a cabinet statement. The line, which connects Adly Mansour station to the new administrative capital, will open next month for a three-month trial, Madbouly said. Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers. ☀️ TOMORROW’S WEATHER- Expect daytime highs of 32°C and nighttime lows of 21°C tomorrow, our favorite weather app tells us.

Europe-based investors are looking to snap up 90% of leasing and non-banking financial services company GlobalCorp, according to a report by Al Mal quoting sources it says are in the know. Due diligence is currently underway, with more details due to be unveiled “soon,” the sources said without pinning down a value to the stake. We tried reaching out to Ezdehar and GlobalCorp, but they were unable to comment as of dispatch time.Who’s selling? Private equity outfit Ezdehar, which owns 60% of GlobalCorp, and German development bank KfW’s Sanad fund, which holds 30%. Both sides said they’re looking to exit GlobalCorp after hitting their target ROI, the sources speaking to Al Mal said.Who is GlobalCorp? GlobalCorp provides “structured leasing products and other financial and advisory services” to specific industries including real estate development, transportation, health, education, pharma, F&B, paper, and chemicals and oil services.Background: The company was set up in 2015 by local and foreign institutions including Ezdehar and Sanad. Its CEO, Hatem Samir holds the 10% stake not owned by the latter two funds. GlobalCorp’s largest shareholder, Ezdehar, counts the European Bank for Reconstruction and Development (EBRD), the European Investment Bank, and the development finance arms of the UK and the Netherlands, among its limited partners. LPs also include the Sawiris family’s Gemini Holding

Everyone wants in on Egypt Mid-Cap Fund II, which will close in May: Private equity firm Ezdehar may be looking at a first close for its second fund, worth USD 120 mn, at the end of May, founder and managing director Emad Barsoum tells us. The European Bank for Reconstruction and Development (EBRD), the European Investment Bank, the Sawiris family’s Gemini Holding, the UK's CDC and the Netherlands’ FMO have all committed capital to the Egypt Mid-Cap Fund II, will look at mid-sized investments in the manufacturing and pharma sectors. . They may also be joined by the International Finance Corporation (IFC), Barsoum revealed to us.The fund’s final close will reach USD 180-200 mn at the end of the year, Barsoum says, as Ezdehar is looking to raise an additional USD 50-100 mn. Investors that may join the final close are the Egyptian-American Enterprise Fund (EAEF), Germany’s DEG Impact, and African fund of funds Sango, he adds.Look for M&A news from Ezdehar in the coming weeks: Ezdehar’s first fund, the Egypt Mid-Cap Fund I, is planning an acquisition in the chemical industry, Barsoum told us. The transaction will be announced in the next few weeks.Ezdehar had previously told us that it will exit two high-growth companies this year as it nears the end of its five-year holding period. These companies are seeing annual growth of 30-40%, Barsoum told local media. This comes after it sold its full 22.5% stake in loyalty services provider Dsquares to Lorax Capital Partners in October.

We have a smattering of debt + finance news to take note of this morning:Non-banking financial services provider GlobalCorp plans to double its lending portfolio to EGP 6 bn this year. The Ezdehar-backed lender will ramp up its factoring and leasing services to companies in the construction, health, food and education sectors, and plans to have SMEs make up 30% of its portfolio by the end of 2021.Payroll management company NowPay has lined up financing from Export Development Bank of Egypt for its salary advance product, the company said in a statement last night (pdf). The two parties have a memorandum of understanding that funding will also be earmarked for other, unspecified products, NowPay said. The startup has so far managed over USD 200 mn in salaries and has signed on corporate clients including SODIC, Wadi Degla, Domty and Axa. NowPay, founded in 2019 to help employees manage their finances and organize advance salary payments, raised USD 600k in a seed funding round led by Endure Capital and 500 Startups. The company also raised another USD 2.1 mn in seed funding last year from a group of Egyptian, US, UAE and Chinese investors led by Foundation Ventures and Endure Capital.Etisalat Egypt has borrowed USD 160 mn to fund the purchase of new cellular spectrum from a syndicate of four UAE banks: Emirates NBD, Abu Dhabi Commercial Bank, Mashreq Bank, and First Abu Dhabi Bank. Etisalat bought two 10-MHz bands for USD 325 mn in an auction run in September by the National Telecommunications Regulatory Authority. Vodafone Egypt and Telecom Egypt had also snapped up new cellular frequencies in the sale, with Vodafone buying two 20-MHz bands for USD 540 mn and TE buying two 10-MHz bands for USD 305 mn.

The latest M&A activity in the red-hot healthcare sector appears to be a bidding war brewing for Alexandria Medical Services. Tawasol Holdings is looking to get full ownership of Alexandria Medical Services by snapping up the 74.08% stake it doesn't already own, according to a bourse filing (pdf) by Alex Medical. Tawasol, which currently holds a 25.92% stake, is apparently a buyer at EGP 38.09 per share. Abu Dhabi Commercial Bank’s (ADCB), which has a 51.5% stake in Alex Medical, had also received an offer from a consortium made up of Mabaret Al Asafra Hospitals and Africa-focused investment firm Tana Africa Capital to acquire its full stake in the company. Separately, Egyptian-British entrepreneur Tamer Abdullah was reported in December to be looking to increase his 9.8% stake in Alex Medical. It’s unclear whether Abdullah is connected with Tawasol Holdings. Speaking of which, Speed Medical (SPMD) has pretty much confirmed today that it is seeking an ownership stake in Prime Speed in a bourse disclosure (pdf) that outlines its stakes in Prime Speed’s subsidiary Misr Laboratories. SPMD noted that its potential acquisition of “a majority stake” in Prime Speed, would give it an effective ownership stake of 60% in Misr Labs, implying that it is seeking full control of Prime Speed. Zaki Hashem and Partners were chosen to act as legal advisor on the transaction. Meanwhile, Hikma Pharma has appointed EFG Hermes as its financial advisor and Sharkawy & Sarhan as counsel ahead of its potential acquisition of GlaxoSmithKline’s Egypt assets, Hapi Journal reported this morning. The LSE-listed company last month signed a non-binding agreement with GSK to enter into talks to acquire a 91.2% stake in its pharma and manufacturing business in Egypt. GSK rejected rival bids by Rameda Pharma and Acdima last week. IN OTHER M&A NEWS- Ezdehar is still looking to exit two high-growth companies in 2021 as it inches closer to the launch of its new USD 200 mn fund, the fund’s managing director Emad Barsoum told the local press. The unnamed companies Ezdehar will be offloading in the coming year are delivering annual top line growth of 30-40% each year, Barsoum said. As a private equity player, Ezdehar typically has a 3-5 year holding period for its investments. Background: Ezdehar said last October it was moving toward exits from three investments and went on to sell its full 22.5% stake in loyalty services provider Dsquares to Lorax Capital Partners. The news came as the private equity outfit prepared to hit the road to raise a new USD 200 mn fund that will target medium-sized companies operating in manufacturing, services, education, healthcare, non-banking financial services worth USD 10-30 mn per transaction. Barsoum said last fall that he expected the second and final close on the fund to come this year. CORRECTION- 18 February 2021: An earlier version of this story incorrectly stated that Tawasol is looking to raise its stake in Alexandria Medical Services to 74.08%.

Lorax Capital Partners has acquired a “significant” minority stake in loyalty services provider Dsquares through its LCP Fund II, the private equity outfit said in a statement (pdf), without specifying the size of the stake or the value of the investment. The acquisition includes Ezdehar Egypt Mid-Cap Fund’s 22.5% stake, which Lorax Capital was reported to be in talks for back in October. The bulk of the investment came through a capital increase which the fund says will be used to up-scale Dsquares’ new business lines and expand the company’s footprint in Egypt and abroad.The investment is the first Lorax has made since closing its LCP Fund II. Lorax said in October it had raised USD 142 mn from international limited partners including EAEF, EBRD and the French Development Agency’s Proparco for its new USD 250 mn SME-focused fund.Who are the players? Lorax is an Egypt-focused private equity firm with LPs that include a who’s who of development finance agencies and other international players. Lorax’s portfolio also includes stakes in Sarwa Capital and Fawry as well as NIS Schools, among others. Dsquares is a Cairo-based startup that provides end-to-end loyalty, rewards and concierge services. Other Dsquares include our friends at Algebra Ventures, the EBRD and the IFC as well as Cisco.But Enterprise, why do PE people talk funny? Like how does a “closed” fund still make an investment? Welcome to the weird (and frankly wonderful) language of private equity investors. Private equity general partners (Lorax in this case) will typically raise a fund (LCP II) from limited partners (EBRD, EAEF — normals would just call them “investors”). Those LPs make commitments to the fund, which hopes to reach a first close (to gin up some excitement) and then a final close (which just means “I raised all the funding I want”). The GP then calls the capital or draws down the commitments made by the LPs (“Gimme my funds, please”) so that it can make investments in portfolio companies (Dsquares). We can talk some other morning about how the PE firms make returns.Advisors: Al Tamimi Law Firm acted as the legal advisor to Lorax while Youssef & Partners provided legal advice to Dsquares.OTHER M&A NEWS-Raya Holding is planning to acquire 100% of two subsidiaries of Saudi conglomerate Alturki Holding, the company said in a regulatory filing (pdf). The company might bring the targets, United Retail Company (URC) and Itsalat International Egypt (i2 Stores), under the umbrella of its retail electronics arm, Raya Shop. EGX-listed consumer stalwart MM Group tried to buy URC and i2 Stores back in 2018.

Private equity outfit Ezdehar’s Nile Aluminum and Metals Company (AluNile) expects to complete “within days” it acquisition of land in Sadat City for a new plant. AluNile CEO Ahmed Guindy told the press. The facility is expected to cost some EGP 100 mn. It will add two new production lines to the company and will focus on producing exterior glass for building facades, Guindy said.

M&A WATCH- Ezdehar’s Nile Aluminum and Metals Company (AluNile) is eyeing stakes in other building materials companies and could start acquisition talks in early 2021, Ezdehar Managing Director Emad Barsoum told the local press, giving no further details. He added that the company — which manufacturers integrated aluminum and glass systems — is currently deciding between Sixth of October and Sadat City for the location of its new EGP 50 mn factory. Background: Ezdehar acquired an undisclosed stake in AluNile in 2017 before offloading a 30% stake to Kuwaiti investment holding company Ekuity in 2019. At the time, Ekuity CEO Adnan Al Sager said he anticipated scaling up AluNile through geographic expansion and growing its portfolio of products and services. Ezdehar, which plans to launch a new USD 200 mn fund by the end of 2020, has been looking to exit several of its investments over the next six months.

M&A WATCH- Has Ezdehar found a buyer for its stake in Dsquares? Lorax Capital Partners is reportedly looking to acquire Ezdehar Egypt Mid-Cap Fund’s 22.5% stake in loyalty services provider Dsquares, the local press reports, citing sources with knowledge of the matter. The sale could be worth more than double what the PE outfit paid for its stake two years ago, the sources suggested, stopping short of pointing to a specific value for the transaction. Ezdehar’s founding partner Emad Barsoum said last week that it is planning to exit Dsquares, as well as two other companies, in the coming six months. Lorax Capital is an Egypt-focused private equity firm that manages the Egyptian-American Enterprise Fund’s funds and makes investments on its behalf.

M&A WATCH- Ezdehar Egypt Mid-Cap Fund is looking to sell its stake in customer loyalty card company Dsquares within the next six months, founding partner Emad Barsoum told Al Mal. Barsoum said the fund also plans to exit two other companies within the same period, and to make one last significant investment before the fund closes at the end of the year. Ezdehar acquired its “significant” minority stake in Dsquares in 2018, and invested again in 2019. New fund to be launched before the end of 2020: Ezdehar will launch a new USD 200 mn fund before the end of the year and is expected to make its first investment in 1Q2021, Barsoum said. The new fund will target medium-sized companies operating in manufacturing, services, education, healthcare, non-banking financial services, investing USD 10-30 mn per transaction, he said in August. Meanwhile, portfolio company Al Tayseer Healthcare Group will invest EGP 500-600 mn into its operations over the next five years and increase the number of beds in its international hospital to 240 from 160, Barsoum said. The fund last month acquired a minority stake in the health firm and said at the time that it was planning to invest in its hospitals and labs.

M&A WATCH- Ezdehar Egypt Mid-Cap Fund has acquired a minority stake in Al Tayseer Healthcare Group, according to an Ezdehar statement (pdf). The statement does not disclose the exact size of the stake or the value of the acquisition. Al Tayseer — which the Egypt-focused PE outfit began eyeing up earlier this year — has been pushing ahead with a EGP 700 mn expansion plan, including building a new hospital on the Banha-Mansoura road and upgrading its Zagazig Hospital to add 90 beds to its capacity. Ezdehar is looking to help Al Tayseer invest more in its hospitals, and also its laboratories, according to the statement. Ezdehar founding partner Emad Barsoum had said last month that the firm — whose limited partners include the European Bank for Reconstruction and Development, the European Investment Bank, UK’s CDC Group, and the Netherlands’ FMO — has drawn down most of the funds committed to its midcap fund and was likely to make its final investment soon. It is unclear whether the final investment is the stake purchase in Al Tayseer. Barsoum said in August the firm is in the market to raise a further USD 200 mn to invest in midcap companies. CORRECTION- 17 September, 2020 A previous version of this story incorrectly spelled Al Tayseer as Al Taisier.

INVESTMENT WATCH- Private equity outfit Ezdehar is looking to raise as much as USD 200 mn from institutional investors to invest in mid-sized enterprises, founding partner Emad Barsoum told the domestic press. The firm expects to reach a first close of about USD 100 mn before the end of this year and is targeting another USD 100 mn in a second close in 2021. The fund will invest in medium-sized companies in Egypt with single-transaction ticket sizes of USD 10-30 mn in sectors including manufacturing, services, education, healthcare, non-banking financial services, Barsoum said. Potential limited partners in the new fund: The European Bank for Reconstruction and Development, the European Investment Bank, the UK's CDC and the Netherlands’ FMO. Celebrity businessman Naguib Sawiris is also said to be a potential LP; Barsoum has a long track record of working with Sawiris-owned businesses. The press also suggests the International Finance Corporation could be interested in the fund. Ezdehar Egypt Mid-Cap, launched in 2016, has already drawn down most of its funds and should be fully invested by the end of October. The firm will likely make its final investment in the coming months, Barsoum is quoted as saying; its portfolio is online here.