Egyptian mobile subscriptions up 642,000 in Feb
The number of mobile phone subscriptions in Egypt rose by 642,000 to 56.49 million in February, according to communications ministry data.
The figures amount to a penetration rate of around 72 percent, although industry executives and analysts estimate that some 20 to 25 percent of the market involves second phones. January subscriptions were 55.848 million.
Most see room for growth up to around 65 million accounts, or 85 percent of the population.
A year ago the three mobile firms – Mobinil, Vodafone Egypt and Etisalat Egypt – had 43.49 million subscribers in Egypt, whose population is 78 million.
The communications minister said in January that a fourth mobile license could be offered depending on factors such as available spectrum and revenue as well as subscriber growth.
The state-owned landline monopoly Telecom Egypt has expressed an interest in any new license, holding off on a dividend payment last month ahead of a possible bid.
Growth in subscriptions has slowed in recent months after jumping 1.67 million in December. More than a million accounts had been created every month since late in 2008 as the three operators offered heavily discounted on-network plans to garner customers. In October subscriptions fell. -Reuters
Egypt Citadel signs land deal for Sudan rice farm
A unit of Egyptian private equity firm Citadel Capital signed a 30-year lease agreement for land south of Khartoum to build Sudan’s first large-scale commercial rice farm, Citadel said in a statement on Tuesday.
Gulf and other Arab countries have been investing in a range of farming projects in Sudan, Africa’s biggest country by area and long viewed as having huge agricultural potential.
The land leased by El-Nahda for Integrated Solutions, a portfolio company of Wafra, Citadel’s platform company in the Sudanese agricultural industry, spans 60,000 feddans (25,210 hectares).
“The farm will produce rice primarily for domestic consumption in Sudan, a net importer of rice, allowing any excess to be exported to other nations in Africa and the Middle East, Citadel said in its statement.
Cairo-based Citadel, which controls $8.3 billion in investments spanning 14 countries, has made various ventures in the Sudanese market including buying a majority stake in a Sudanese biscuit and sweet maker last year.
“As the third portfolio company under Wafra, El-Nahda builds on our experience at Sudanese Egyptian Agricultural Crops Company (SEAC) and Sabina, Citadel Managing Director Hisham El-Khazindar said in the statement.
“Sabina is on track to have 3,000 feddans under cultivation by next June, while SEAC will be ready to seed 20,000 feddans by the onset of the rainy season in mid-2011, he said.
The statement said the lease area is flooded for up to eight months a year by water held back by the Jebel Al-Awliaa Dam.
Sudan has a varied climate, with heavy rainfall in some areas and water from the Nile which means it can grow a range of crops from wheat and animal feed to citruses and oilseeds. -Reuters
HDB raises dividend 70 pct to LE2.5
Egypt’s Housing and Development Bank (HDB) will raise its dividend by 70 percent to LE 2.5, it said in an advertisement in state-run daily Al-Ahram.
The bank, which is raising LE 930 million to finish housing projects and expand its retail operations, reported last week a net profit of LE 567 million in 2009, up from LE 202 million in 2008.
HDB launched the capital raising last month to increase its capital to LE 1.6 billion.
Shares worth LE 550 million are being sold to the public and the rest to existing shareholders and employees. Government ownership will fall below 50 percent.
The bank, which focuses on real estate financing, will pay the dividend starting April 20 for holders as of April 15, the advertisement said. -Reuters
Citigroup raises price target on Egypt’s OCI
Citigroup raised its share-price target and 2010 profit estimates on Orascom Construction Industries (OCI) to reflect OCI’s acquisition of DSM’s agro and melamine businesses.
The brokerage increased the price target to LE 280 from LE 260 and 2010 EPS estimates by 7 percent to $2.60.
The brokerage said the acquisition from Dutch chemicals group DSM allows the building and fertilizer industry giant to downstream expansion into nitrates and makes it the third-largest nitrogen fertilizer producer globally, while also widening its distribution platform.
“We continue to believe OCI will consolidate its position in the fertilizer industry and may expand into phosphate fertilizer production. This may result from a partnership with local producers in Morocco and Tunisia or via the acquisition of its own phosphate mining license in Egypt, analyst Heidy Rehman said in a note.
The company will seek to leverage its core competence in construction to seek out new opportunities, the analyst added. Rehman, however, kept a “hold rating on the OCI stock. -Reuters
Hilton signs for new Nile-side property
Hilton Worldwide said it signed a management agreement with Safir El Zamalek Hotel Company for a new Hilton branded hotel on the Nile, according to a press statement.
The Hilton Zamalek Residence Cairo is scheduled to open in July with 88 rooms and 76 suites. The Management Agreement was signed by Mishal Abdallah Almasad, chairman of Safir El Zamalek Hotel Company SAE, and Mahmoud Mokhtar, vice president of operations for Hilton Worldwide, Egypt.
The residential hotel has undergone a $20 million renovation and facelift, and now features five restaurants, meeting rooms, a business center and leisure facilities including a health club and spa with sauna, steam room, massage treatment room and gym.
