HC Securities and Investment is currently working as the financial adviser in two acquisition deals in “heavy industries”, with a total value of EGP 3bn during the first quarter of 2014, according Hussein Shokry, HC’s chairman and managing director.
The deals, valued at EGP 2.5bn and EGP 0.5bn, both involve acquisitions by domestic companies, Shokry said, declining to identify the companies involved.
HC’s senior managers said during a roundtable conference that since the January 2011 uprising, it has successfully acted as the financial adviser in six significant acquisition deals made in the Egyptian market, with a total value of over EGP 5bn. Most of the acquisitions were in the form of direct investments from Gulf countries.
HC has provided a financial consulting to the Emirates NBD and BNP Paribas deal, finalised in June 2013; the acquisition by Jordanian Hikma pharmaceuticals of the Egyptian Company for Pharmaceuticals and Chemical Industries; and the acquisition by Saudi Arabia’s Savola of two Egyptian food-industry companies, El-Farasha and El-Malika.
The latest deal for which HC was a financial adviser involves the acquisition by Middle East Glass Manufacturing Company of Wadi Glass Containers Company. The value of the acquisition exceeded EGP 200m and was implemented in January 2014.
“We are proud of these accomplishments, as they were viewed as a challenge in light of the circumstances that the [finance and securities] sector faced,” Shokry said.
The firm also managed the IPO of 10% of Misr National Steel Company “Ataqa” shares on the Egyptian bourse in January. The IPO offered 3m shares at a total value of almost EGP 60m.
HC Securities occupied third place in the annual ranking of brokerage firms in terms of turnover for 2013, with a market share of 6.3%. The company ranked first in terms of market share in the over-the-counter (OTC) market with a 37% stake.
HC has added seven new investment funds during the past three years. This was reflected in the company’s assets, which reached EGP 5bn in 2013.
Omar Radwan, head of the asset management department at HC, said that laws regulating investment funds will be modified, and are currently being reviewed by the cabinet.
Radwan said that HC is waiting on the investment minister’s announcement regarding the new legislation.
“The legislations of our investment funds will be close to international standards and legislations, allowing for the increased presence of foreign investors, who are currently absent,” he added.
Shawkat El-Maraghy, managing director for HC Securities, said that the Egyptian bourse witnessed a challenging year in 2013, which was accompanied with important events and drastic changes in the investment trends, especially in the first quarter.
El-Maraghy added: “During the second half, however, there was a notable and increasing investor presence.”