Helios’ Raya Foods bid collapses, marking its second failed Egypt deal in two months

Good morning, folks. It’s President Xi Jinping’s last day in Cairo, and we have a recap of all the arrangements on the table so far. We also have a story about the FRA narrowing a rule on insider trading.

Xi’s visit has been eventful, including five agreements and MoUs, more than 20 cooperation documents, a TEDA expansion, a tire-export cluster taking shape in Sokhna, a Mansour-Tianneng battery MoU, LRT financing, and OPay applying for a digital banking license. Today is his last day in town, and we’re waiting to see if we get any more big-ticket items, like a Huawei chip, a data center agreement, or a major EV investment.

The EGX insider-trading blackout story is smaller, but still worth understanding. The FRA has narrowed the blackout that used to surround every material disclosure, so it now only runs on the earnings calendar. The underlying ban on insider trading is unchanged; what’s been adjusted is the automatic buffer that used to sit around every disclosure.

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Helios frozen out of Raya Foods

Raya Holding’s board walked away from Helios’ bid for its frozen-food unit, according to an EGX disclosure (pdf), marking the UK-based, Africa-focused PE firm’s second collapsed local transaction in under two months. Raya’s BoD resolved yesterday not to proceed with Helios Investment Partners’ amended offer for 100% of Raya Foods, citing unmet conditions required to complete the transaction.

REFRESHER- In October 2024, Helios opened with USD 40 mn for 49% of Raya Foods. The board cleared an escalated full buyout in December last year, with FACT appointed as independent financial advisor to set fair value, and the exit set to go to an EGM once the report landed. Terms of the amended offer were never disclosed. In July, Telecom Egypt pulled the plug on its planned sale of a majority stake in Regional Data Center Hub to Helios Investment Partners.

Pairing up on industrial zones

Egypt and Oman are studying plans to build twin industrial zones — one in each country — modeled on Egypt’s industrial-developer model, according to a statement by the Industrial Development Authority (IDA). The two sides are still working out which sectors would anchor the proposed zones, with a broader aim to support industrial integration and trade between the two markets.

This is a sign Cairo’s zone playbook could become an export in its own right. Under an industrial-developer model, private developers (rather than the state) handle the development and management of industrial land — an approach the government has been deploying in new specialized industrial zones at home. Egypt currently runs 26 such zones through 12 private developers across c. 40 mn sqm, according to the IDA.

REMEMBER- Egypt and Oman have been looking at ways to link their industrial footprints more closely, exploring a Sokhna-Sohar supply-chain link late last year, including logistics infrastructure and joint industrial activity that could channel Omani raw materials into Egyptian manufacturing.

PSA-

#1- Property buyers are being told to read the fine print on assignment of rights: The Financial Regulatory Authority (FRA) is urging buyers to review all contractual terms before signing an installment purchase contract, particularly clauses covering “assignment of rights,” the authority said in a statement yesterday. Most developer contracts now include clauses letting the developer assign either the entire contract or the financial rights arising from it to a third party — in practice, that’s usually a mortgage finance company. Where that happens, the FRA says both the developer and the finance company are obliged to notify the buyer of the assignment and of how the remaining installments are to be paid.

#2- The eight-month temporary tax card we first told you about in June is now live, according to a statement by the Egyptian Tax Authority. The card gives eligible investors eight months to complete the licensing and other establishment procedures needed to qualify for the standard five-year tax card.

There are limits: Temporary cardholders cannot issue electronic invoices or receipts until they regularize their position and secure the permanent card, while eligibility itself will be determined by the Tax Authority based on the type of business. Ordinary service and trading businesses operating from a single, properly documented location will continue to receive the five-year card directly.

#3- WEATHER- It’s hazy, humid, and foggy on your morning drive in Cairo today, with a high of 35°C and a low of 24°C, according to our favorite weather app.

It’s muggy and marginally cooler in Alexandria, with a high of 32°C and a low of 24°C.

And over the weekend, expect to see highs of 34-35°C in the capital and 31°C both days for our friends on the Mediterranean.

The big story abroad

As the White House pushes more international players to invest in Venezuela, oil giant Chevron announced a USD 7 bn plan to double its production in the South American nation over the next five years. The Washington-led drive for crude oil investment also saw commitments from Eni and General Electric.

Chip appetite set to rise? Semiconductor manufacturer Broadcom foresees a surge in AI chip sales over the next two years, doubling to USD 115 bn next year and USD 230 bn the year after, according to its CEO Hock Tan. The boom is fueled by demand from Google, OpenAI, and Meta, which are looking to supplement their supply from Nvidia, whose dominance in the field Broadcom hopes to challenge.

Antitrust bid to break up Google ad arm fails (again): Google will not have to divest crucial parts of its digital advertising unit, after a federal judge rejected a bid by the US Department of Justice to dismantle the search giant’s alleged monopoly. The decision — the second in as many years — ruled that, while Google operated an illegal monopoly, it did not have to sell its Chrome browser and Android operating system.