M&A-

#1- Cairo Housing approves capital increase ahead of share swap with United Housing: EGX-listed real estate player Cairo Housing and Development’s extraordinary general assembly has approved a decision to increase its capital to nearly EGP 648 mn from EGP 448 mn in preparation for its share swap with United for Housing and Development, the company said in an EGX disclosure (pdf). The company looks to acquire a maximum of 133 mn shares in United Housing, and will issue up to 399 mn shares at a fair value of EGP 3.03.

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Remember: Cairo Housing and Development last month announced that it would submit an MTO for a stake in United for Housing and Development via share swap after its board greenlit the move. The company is looking to increase its parent company and its subsidiaries’ stake in United to up to 90% — Aspire and its subsidiaries own a combined minority 49.9% stake in United.

#2- Al Areej International Investment reduces stake in Eastern Company: Al Areej International Investment has sold some 9 mn shares of its stake in tobacco giant Eastern Company to an undisclosed buyer at EGP 25 per share putting the transaction’s value at EGP 225 mn, according to an EGX disclosure (pdf). The transaction pushed 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.

DEBT-

#1- Aur Capital to lead EverGrow’s debt negotiations: Local fertilizer producer EverGrow has appointed Aur Capital as its financial advisor to handle its EGP 32 bn debt restructuring talks with creditor banks, Al Shorouk reports citing informed sources. Aur will also look into debt restructuring proposals, including rescheduling parts of the debt payment, exploring debt-for-equity swaps with the banks, and potentially writing off some interest and fines while restructuring the remainder.

Remember:A banking committee led by the National Bank of Egypt, Banque Misr, and EG Bank was formed in July to look into proposals for restructuring EverGrow’s debt — with the company looking at a 16-year repayment plan, seeking a EGP 2 bn working capital loan, lower interest rates on its debts, and partial debt-for-equity swaps with the banks.

AND- Bringing in a new investor: EverGrow is looking to bring in a strategic investor to acquire around 30% of its capital. If the plan materializes, the company will overhaul its board of directors as part of broader restructuring efforts following its debt restructuring.

#2- Kredit secures EGP 875 mn in facilities: GB Corp’s SME lender Kredit has secured EGP 875 mn in credit financing from nine local and international banks to support its expansion plans and help it support local SMEs, Al Mal reports. The banks include the National Bank of Egypt, Banque du Caire, Al Baraka Bank, the Micro, Small, and Medium Enterprise Development Agency (MSMEDA), and the Egyptian Arab Land Bank (EALB).

COMMODITIES-

GASC launches international wheat tender: State grain buyer GASC has launched an international tender for an undisclosed amount of wheat for shipment between 25 November and 15 December, Al Borsa reports. The authority will review the offers submitted later today.

ENERGY-

The Satis gas field is back on the market: EGAS has launched a tender for the development of the Satis gas field in the North El Burg offshore concession after the BP-Adnoc JV abandoned the concession, a government official told Asharq Business. The Satis field has some 1 tn cbf of gas reserves, according to the source.

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