{"id":653521,"date":"2024-10-17T00:00:00","date_gmt":"2024-10-17T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/17\/unnamed-bidder-wants-49-of-raya-foods-for-usd-40-mn\/"},"modified":"2024-10-17T00:00:00","modified_gmt":"2024-10-17T00:00:00","slug":"unnamed-bidder-wants-49-of-raya-foods-for-usd-40-mn","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/10\/17\/unnamed-bidder-wants-49-of-raya-foods-for-usd-40-mn\/","title":{"rendered":"Unnamed bidder wants 49% of Raya Foods for USD 40 mn"},"content":{"rendered":"

Good afternoon, friends, and a very happy Thursday to you all. <\/strong>We\u2019re gearing up for the weekend after a long week of headlines and will see you again on Sunday.<\/p>\n

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THE BIG STORY TODAY<\/p>\n

Food sector acquisitions just keep coming:<\/strong> Raya Holding has received a binding offer to acquire up to 49% of its wholly-owned subsidiary Raya Foods for USD 40 mn, the parent company said in a disclose to the EGX today (pdf)<\/a>, noting that Raya Foods typically contributes c. 5% of the group total revenues. Raya stopped short of disclosing the name of the bidder.<\/p>\n

Market Reax: <\/strong>Raya Holding\u2019s share jumped 12.8% to a record high of EGP 3.44 at today\u2019s close on the back of the news.<\/p>\n

ICYMI-<\/strong> The new offer comes two days after another major bid in the food sector from Denmark-based Arla Foods at EGX-listed Domty, which saw the dairy producer\u2019s shares jump 40% since Tuesday\u2019s session.<\/p>\n

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THE BIG STORY ABROAD<\/p>\n

European Central Bank is widely expected to announce the third interest rate cut <\/strong>of 2024 sometime today, <\/strong>CNBC<\/a> reports. The change is assumed to be in response to EU policymakers marking diminished inflation risks \u2014 with price markups rising only to 1.8% last month opposed to the projected 2% seen for the past three years \u2014 as well as a weakening growth outlook that now projects a 0.8% increase in GDP in comparison to the previous 0.9% estimate. The ECB pinpoints manufacturing weakness in Germany and a looming fiscal consolidation project in France as major factors. If the cut is implemented, it would mark the first time in 13 years that the ECB reduced rates at consecutive meetings.<\/p>\n

It\u2019s a totally different story in our neck of the woods<\/strong>, as all of the analysts and economists we surveyed earlier this week for our EnterpriseAM poll<\/a> see the MPC holding rates steady at its meeting later today as the central bank works to prioritize controlling inflation over any monetary policy easing. Analysts we spoke to pointed to sticky inflation, current investor wariness of Egyptian debt, and Israel\u2019s war on its neighbors endangering Egypt-bound gas flows and ramping up the price of energy imports, as well as a seasonal rise in educational expenses as factors that could cause inflation to persist during 4Q 2024 \u2014 cementing the expectations of the ongoing tightening cycle carrying over to the first quarter of next year.<\/p>\n

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