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Influential Egyptian Mahmoud family gains $67.79 million from joint stake in MM Group in 77 days

The gains came off the back of a rise in the company’s share price.

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MM Group Chairman Khaled Mahmoud.

The joint stake of the influential Egyptian Mahmoud family in MM Group has gained $65.81 million (EGP1.03 billion) in 77 days. The increase in the market value of their stake came off the back of a sharp rise in the company’s share price following the issuance of bonus shares by its board of directors.

MM Group for Industry and International Trade is an Egyptian company operating in consumer electronics distribution and retail. Its distribution network in Egypt covers more than 40,000 points of sale.

Shares in the group have risen as of late as investors price in its impressive results for Q1 2021.

In its quarterly filings, the group posted $159.69 million (EGP2.51 billion) in revenues in Q1 2021, 12.6-percent higher than its revenues of $141.82 million (EGP2.23 billion) for Q1 2020.

The increase was driven by a 14.7-percent hike in its consumer electronic sales and a 33.5-percent increase in its auto sales, which offset a 25.2-percent decline in its telecom sales.

This led to a growth in profits from $6.78 million (EGP106.64 million) in Q1 2020 to $8.33 million (EGP130.98 million) in Q1 2021.

As of press time, 10:00 AM (UTC+1), July 14, shares in the group were trading at $0.460 (EGP7.23), or 15-percent higher than its opening price of $0.399 (EGP6.27) since the financial year began.

The group’s share price has increased from $0.424 (EGP6.66) on April 28 to $0.460 (EGP7.23) as of press time today, July 14. This translates to an eight-percent gain for shareholders in 77 days.

Aside from playing significant management roles, family members Mohamed Gamal, Hany Gamal, Khaled Gamal, Amr Salah, Shereen Amin, Mervat Amin, Rasha Amin and Rania Amin hold a joint controlling stake of 56.40 percent in the group.

The market value of their stake has increased from $184.89 million (EGP2.91 billion) on April 28 to $250.70 million (EGP3.94 billion) today.

This translates to a gain of $65.81 million (EGP1.03 billion) for the family in 77 days.

It is worth noting that $46.18 million of the family’s total earnings came from the distribution of bonus shares by the group’s board as dividends for the period ending Dec. 31. Meanwhile, $19.63 million of its earnings came from the an eight-percent rise in its share price.

MM Group is currently chaired by Khaled Mahmoud.

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South African tech tycoon Zak Calisto gains $166 million in four weeks

Calisto is one of Africa’s richest tech entrepreneurs.

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South African tech tycoon Zak Calisto.

As the frenzy returns to equity markets, shares in Karooooo Limited have risen recently by double digits due to sustained buying interest as investors bet on tech stocks trading at all-time lows.

Karooooo Limited is a mobility platform led by South African businessman Zak Calisto.

As a result of the recent market surge, the value of Calisto’s 74.7-percent stake in Karooooo has increased by $166 million in the past 27 days to well above $640 million.

Calisto, who founded Karooooo and grew it into an international provider of smart transportation management solutions, is one of South Africa’s wealthiest men and one of Africa’s richest tech entrepreneurs.

As of press time on Aug. 10, the company’s shares were trading at $27.85 per share, up from their opening price of $26.98 per share earlier this week. The Singapore-based mobility platform’s market capitalization is presently $860 million.

The company’s shares have increased from a price of $20.65 to $27.85 at the time of writing this report, representing a 34.87-percent gain for patient investors since July 14.

The market value of Calisto’s shareholding in Karooooo has increased from $477.6 million on July 14 to $644.1 million at the time of writing, representing a $166-million gain for the tech tycoon.

The renewed buying interest in Karooooo’s shares can be attributed to investor reactions to the company’s double-digit increase in earnings in the first quarter of its 2023 fiscal year.

According to its recently published first quarter results, the Singapore-based global mobility SaaS platform’s profit increased by 44 percent to R156 million ($9.37 million), up from R108 million ($6.48 million) in the first quarter of 2022.

Earnings increased by double digits due to the higher revenue generated during the period, as the company’s total subscriber base surpassed 1.5 million, up from less than 1.4 million a year ago.

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Abu Dhabi-based Chimera acquires controlling stake in financial services provider linked to Egypt’s richest family

It is unclear how much of the 59.22 percent stake held by Orascom Financial Holding, a firm led by the billionaire Sawiris family, was acquired during the transaction.

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Egyptian billionaire Naguib Sawiris

Chimera Investment, an Abu Dhabi-based firm led by Pakistani businessman Syed Basar Shueb, has announced the purchase of a majority stake in Beltone Financial Holding SAE, a Cairo-based financial services firm partially owned by Egypt’s richest family, the Sawiris.

According to a press release issued by the Abu Dhabi-based firm, a total of 55.9 percent of Beltone’s shareholding was acquired at a price of EGP1.485 ($0.0779) per share, bringing the total transaction value to EGP370 million ($19.3 million).

It is unclear how much of the 59.22-percent stake held by Orascom Financial Holding, a firm led by the Egyptian billionaire Sawiris family, was acquired during the share-purchase transaction. However, it is clear that Chimera is now the majority shareholder in Beltone as a result of the recent deal.

Syed Basar Shueb, chairman of Chimera Investment, commented on the transaction, stating that it aligns with Chimera’s broader strategy of long-term value creation investments and expands the company’s presence in regional economies.

He went on to state that, in the coming months, the Abu Dhabi-based firm will look to unlock value and implement an all-encompassing transformation plan aimed at restoring Beltone’s growth and profitability.

In addition to the transaction, Dalia Khorshid, the chairwoman and CEO of MASAR Financial Advisory, a regional financial advisory firm, was appointed as the new CEO of Beltone, as the Egyptian firm enters a new phase of growth under new management.

“I am honored by the opportunity to lead Beltone’s strategic transformation plan,” Khorshid said in response to her recent appointment as CEO. “I am confident that we will restructure and grow this institution to become a major market leader in the region and a solid platform for attracting international investments into our host markets.”

Beltone, a financial services provider in Egypt and the Middle East and North Africa, was founded in 2006 to provide brokerage, investment banking, asset management, equity research, and a variety of non-banking financial services like leasing, consumer finance, and venture capital platforms.

In a $1.3-million deal nearly a year ago, Orascom Financial Holding, led by Egypt’s Sawiris family, reduced its stake in Beltone to 59.22 from 61.24 percent.

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Ardova dismisses winding-up order, as Femi Otedola’s Zenon serves majority shareholder petition over $6-million debt

The once promising relationship between Otedola’s Zenon and Abdulwasiu Sowami’s Prudent Energy has taken a new turn.

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Femi Otedola. ©Billionaires.Africa

Arodva Plc, a Nigerian oil and gas marketing company majority owned by Nigerian businessman Abdulwasiu Sowami, has denied reports that it is facing a winding-up petition over a $6-million debt owed to Zenon Petroleum & Gas Limited, an oil company founded by billionaire businessman Femi Otedola.

The news comes as the once promising relationship between Otedola’s Zenon and Sowami’s Prudent Energy, Ardova’s majority shareholder, takes a new turn over the debt.

The oil company stated in a press release on Tuesday that its management’s attention has been drawn to recent media claims regarding the debt, and it is critical to set the record straight that no winding-up petitions are presently facing the company in relation to the 2019 transaction.

The company went on to state that the current issues are related to claims and warranties made under a share-purchase agreement between Prudent Energy and Zenon for the purchase of shares in Forte Oil Plc in a $200-million deal in 2019.

The management went on to state that Ardova is not party to any of the proceedings, that the proceedings have no bearing on the company’s rights or operations, and that it has no claims against its assets.

Zenon, which has a guarantee for the prompt payment of the debt, served Prudent Energy with a petition earlier this week, more than a month after the deferred consideration, which was due on June 18, had yet to be paid despite demand letters sent to Sowami.

Experts believe that the dispute will reignite debate over Ardova’s share ownership structure.

The $6-million debt, which represents the remaining purchase consideration for the Forte Oil stake, adds to Prudent Energy’s pressures, as shares in Ardova, the company that it acquired nearly three years ago, have fallen significantly from an average price of N23.6 ($0.055) per share in 2019 to N13 ($0.0305) per share at the time of writing this report.

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