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Nassef Sawiris’ stake in Orascom Construction drops by $10 million in one month

The company’s share price on the Egyptian Stock Exchange lost six percent of its value since early May.

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Egyptian billionaire Nassef Sawiris.

Egyptian billionaire Nassef Sawiris’ stake in the leading North African corporation Orascom Construction Plc (ORAS) has dropped in value by $10 million in 31 days, according to Reuters.

The company’s share price on the Egyptian Stock Exchange (EGX) lost six percent of its value since the start of May, decreasing from $5.42 (EGP85.00) per share on May 4 to $5.12 (EGP80.25) per share as of May 31.

ORAS is a leading engineering and construction services company, with a footprint in the Middle East, Africa and the United States.

The company is majority-owned by Sawiris and operates in the infrastructure, industrial and commercial sectors.

ORAS was established in 1950 by Onsi Sawiris, Sawiris’ father. Since then, it has grown into a market leader with a value of about $597 million (EGP9.37 billion) on the EGX.

ORAS split in 2015 into three separate entities: Orascom Telecom led by Naguib Sawiris, Orascom Hotels and Development chaired by Samih Sawiris and ORAS.

Sawiris has a 29-percent stake in the company with about 33,825,323 ordinary shares worth $173 million (EGP2.7 billion).

This is lower than their earlier market value of $183 million, or the value of his stake when the ORAS share price was $5.42 (EGP85.00). This translates to a loss of $10 million (EGP161 million) for Sawiris, whose net worth is valued at $7.16 billion.

Sawiris is Egypt’s wealthiest man. His most valuable asset is his six-percent stake in Adidas, the global sportswear giant headquartered in Germany. He also owns a stake in LafargeHolcim, a global leader in building materials and solutions.

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Egyptian billionaire Yasseen Mansour gains $1.86 million in 74 days from Palm Hills stake

Mansou owns a sizable 5.6-percent stake in the Cairo-based real estate firm.

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Egyptian billionaire Yasseen Mansour. ©Billionaires.Africa

Egyptian billionaire Yasseen Mansour has recorded a EGP35.6-million ($1.86 million) boost in his net worth in the past 74 days, as shares in Palm Hills Development increased by nearly 19 percent in reaction to the company’s recently released first-quarter results.

Palm Hills Development, an operating subsidiary of Egypt’s largest conglomerate, Mansour Group, is a well-known real estate developer with active investments in Egypt. The company develops integrated residential, commercial, and resort communities.

Mansour, the chairman of Palm Hills Development and one of Egypt’s and Africa’s wealthiest individuals, owns a sizable 5.6-percent stake in the Cairo-based real estate firm.

The Egyptian real estate developer revealed that its profit increased by more than 40 percent in the first quarter of 2022, from EGP217.4 million ($11.36 million) in the first quarter of 2021 to EGP305.8 million ($16 million), owing to sustained growth in demand for properties in Egypt.

As a result of the firm’s strong financial performance, investors on the Egyptian Stock Exchange increased their buying interest in Palm Hills shares, resulting in an 18.6-percent increase in the firm’s stock price from EGP1.13 ($0.059) on June 1 to EGP1.34 ($0.07) on Aug. 14.

Mansour’s 5.6-percent stake in Palm Hills Development has increased in value over the past 74 days, from EGP191.94 million ($10 million) to EGP227.6 million ($11.89 million) at the time of writing.

This equates to a total gain of EGP35.6 million ($1.86 million) for the Egyptian billionaire, who ranks as one of the wealthiest men on the African continent, alongside his brothers Mohamed Mansour and Youssef Mansour, both of whom own Mansour Group and Palm Hills Development.

His net worth is estimated at $1.1 billion, making him one of Africa’s wealthiest businessmen.

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Led by Egyptian Khamis family, Oriental Weavers set to withdraw investments from China

Oriental Weavers operates under the leadership of Egyptian businesswoman Yasmine Mohamed Farid Khamis.

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Yasmine Mohamed Farid Khamis.

The board of directors of Oriental Weavers has decided to withdraw its investments in China as the management implements measures to maximize earnings and revenues in line with its strategic growth roadmap. 

Operating under the leadership of Egyptian businesswoman Yasmine Mohamed Farid Khamis and other family members of the late Mohammed Farid Khamis, Oriental Weavers is a leading carpet manufacturer and distributor with active operations in about 150 countries worldwide.

According to the plan to withdraw its investments from China, the company declared that it will accept already made offers to buy out its stake in Oriental Weavers China, and further information will be released after the deal has been completed.

Through this decision, the company will sell its Chinese manufacturing facilities, Oriental Weavers (Tianjin) Company Limited (Oriental Weavers China), to local investors.

The decision to withdraw its investments in Mainland China was made almost eight months after the company’s board gave the management permission to study the situation and decide whether to sell or liquidate Oriental Weavers China.

Oriental Weavers’ exit from China will be crucial to lowering operating costs as it seeks to cut ties with the Asian economy as a result of brewing regulatory tensions in China and escalating trade tensions between Washington and Beijing.

According to Yasmine Al-Gohary, Oriental Weavers’ investor relations manager, the decision to withdraw its investments from China can be attributed to the high operating costs in the country, particularly following the emergence of the COVID-19 pandemic in 2020.

According to Al-Gohary, the operations in China, which make up just 0.3 percent of the group’s total assets and only contribute one percent of its revenue, were also impacted by the frequent factory closures and shortening of working hours.

Al-Gohary added that the business also intended to invest $10 million this year to place itself on the path of growth and increase its production capacity to keep up with market demand.

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Tunisian mogul Aziz Mebarek-led AfricInvest leads $8.2-million investment in fintech player, Bizao

Africinvest has raised more than $1.9 billion and invested in over 170 businesses in 25 African countries since its inception.

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Aziz Mebarek.

Bizao, a fintech company with active operations in more than 10 African countries, has received $8.2 million (€8 million) in a Series-A funding round led by AfricInvest, as it prepares to expand its operations in North Africa.

AfricInvest is a leading investment firm co-founded by multimillionaire Tunisian businessmen Aziz Mebarek and Ziad Oueslati, which focuses on long-term growth and business improvements rather than short-term developments.

The $8.2-million capital injection secured by Bizao, a Paris-based payment services provider, will be used to accelerate operations throughout the continent and invest in developing new products and services.

“This round of financing will enable us to design new product lines for high-potential vertically integrated organizations, expand in new markets, and grow the team across all our offices,” Bizao Founder and CEO Aurelien Duval-Delort said.

The news comes not long after AfricInvest closed its €110-million ($112 million) pan-African venture fund in collaboration with the French venture capital firm Cathay Innovation.

The $112-million Cathay AfricInvest Innovation Fund (will be used to support startups and help them break even faster and further innovate to improve the lives of Africans.

The initial check size from the fund will range from €1 million ($1.02 million) to €10 million ($10.2 million) for growth-stage startups and up to €1 million ($1.02 million) for early-stage startups in a variety of industries, including fintech, mobility, health tech, edtech, AI, digital content, and ag-tech, according to executives at the investment firm.

Founded in 1994 by Mebarek and Oueslati as a long-term private equity firm, Africinvest has raised more than $1.9 billion and invested in over 170 businesses in 25 African countries since its inception.

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