OCI earmarks $200 mln for fertiliser projects
Orascom Construction Industries (OCI), Egypt s biggest listed builder, has earmarked about $200 million for fertilizer production lines and other initiatives, an executive said on Wednesday.
The money has been allocated for a urea ammonium nitrate production line, an ammonium sulphate line and the expansion and upgrade of existing urea production capacity in Egypt, Investor Relations Manager Omar Darwazah told Reuters.
Al-Alam Al-Youm, an Egyptian daily, had reported that the $200 million would be spent on two new fertilizer factories.
These initiatives are already under construction, Darwazah said, clarifying Wednesday s newspaper report.
OCI, which lists its shares in Cairo and London, has interests in construction and fertilizer production. Many analysts predict it will do well this year as fertilizer prices continue to rise.
The firm is also considering bidding for Copebras, a Brazilian fertilizer maker owned by Anglo-American, and licenses to produce fertilizer in India, Chief Executive Nassef Sawiris has said. -Reuters
Bonds in Egypt s Mobinil 1.5 times oversubscribed
The first tranche of Egyptian mobile firm Mobinil s issue of LE 1.5 billion ($256.5 million) in corporate bonds was oversubscribed by one a half times, its underwriter said.
Institutions and high net-worth investors placed orders for 21 million bonds, compared to the 14 million on offer in the first tranche worth LE 1.4 billion, EFG-Hermes said in a statement on Tuesday.
The bond is both the largest corporate issue in Egypt year-to-date and the first bond in Egypt to be widely marketed to financial institutions and fully underwritten by an investment bank, it said.
A second tranche of LE 100 million offered to retail investors was oversubscribed in excess of 11.4 times, the bank said.
The 5-year bonds, which Mobinil will use to finance the expansion of its network, have a fixed annual yield of 12.25 percent payable once every six months. -Reuters
Arab Cotton Ginning to pay dividend in shares
Egyptian textiles company Arab Cotton Ginning said on Wednesday it had received the regulator s approval to distribute one free share for each 10 owned as a dividend.
This is the dividend of last October … distribution should be sometime next week, Hany Olama, chairman of Arab Cotton Ginning, told Reuters.
The shares will capitalize reserves of LE 120 million ($22 million).
Arab Cotton Ginning had 251.74 million shares, as of Dec. 31, 2009, according to Reuters data. The firm s shares were trading 4.4 percent higher at LE 5.24 by 0936 GMT. -Reuters
Groundstar enters asset exchange agreement in Egypt
Groundstar Resources said it has entered into an asset exchange agreement with Karl Thomson Energy Limited (KTE), its partner in its two Egyptian blocks, the company said in a statement.
This exchange is mainly driven by the company s desire to increase its interest in the West Kom Ombo (WKO) block where Groundstar is operator and has a major working interest, and which is in an area that has been experiencing a high level of activity.
Dana Gas Egypt announced on January 11, 2010 the completion of the Al Baraka-4 well, with a potential flow rate with artificial lifting, of 1,300 bopd, on the block adjacent to the east.
According to this agreement, Groundstar is exchanging its 20 percent working interest in the West Esh El Mallaha (WEEM) block, where KTE has been funding drilling and completion operations solely as of November 27, 2009, for a 20 percent interest in the WKO block.
Groundstar will also receive approximately $800,000 in adjustments after the deal is approved by Egyptian regulatory authorities.
As a result of this agreement Groundstar s interest in WKO will increase to 80 percent and its interest in WEEM will be nil. As a result of this asset exchange agreement, Groundstar s net land interest will increase by over 6,000 square kilometers in the WKO block.
Groundstar is a publicly traded Canadian junior oil and gas company actively pursuing exploration opportunities in the Middle East, North Africa and South America.
US truck maker eyes MENA region
A US-based manufacturer of commercial trucks and engines said on Tuesday it was targeting double digit growth in the MENA region in 2010.
Navistar Global Operations Corporation (Navistar) said it was aiming to take 15 percent market share in the region by 2015, as the company expands its manufacturing operations and strengthens its distribution network.
The company said it sees strong potential in the region s commercial vehicles market and is pursuing opportunities in Abu Dhabi, Kuwait and Saudi Arabia in 2010.
Navistar has invested heavily in truck and engine plants across the region, including a major plant in India, with production expected to commence this year. Research is also underway for two further assembly plants in the region.
Arshad Khan, managing director, said: While we are relatively new to the region, we have enjoyed success by associating ourselves with strong partners, including our UAE distributor, Emirates for American and European Cars.
We have a solid base of dealers across the region and are represented in Saudi Arabia, Qatar, Oman, Jordan, Kuwait, Yemen, Lebanon and Iraq. We also have distributors in Egypt, Tunisia, Algeria and Morocco.
As part of its expansion plan, Navistar is preparing to showcase its products to government departments and trucking companies at Commercial Vehicles Middle East in Dubai in March, he added. -Arabian Business
