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Egypt Kuwait Holding reveals updates on $300m investment plan

Egypt Kuwait Holding reveals updates on $300m investment plan
The company raised its direct and indirect stake in Alexandria Fertilizers Co
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Cairo – MubasherEgypt Kuwait Holding (EKH) revealed the latest updates of its previously-announced $300 million investment plan for 2021 and 2022.

The firm, listed on the Egyptian Exchange (EGX) and Boursa Kuwait, plans to invest $80 million in resuming its medium-density fibreboard (MDF) factory and tree planting project, EKH said in a statement to the EGX on Tuesday. 

Output is expected to begin in the second quarter (Q2) of 2022. 

The dual-listed company is also investing $75 million in developing a number of wells in the North Sinai offshore natural gas concession. Two wells have been drilled, and work is underway for drilling the third. 

It is also considering several investment opportunities in the oil and gas production sector in Africa and the Middle East. 

Moreover, the plan also includes investing $30 million in Sprea Misr factory complex, including $18 million for building a sulfuric acid production plant and $12 million for increasing the output capacity of its laminate sheets production line. 

A total of $15 million will be invested in boosting the output capacity of Brog El-Arab plant by 40 megawatts (MW) to 135 MW. A total of 20 MW has been added in the third quarter (Q3) of 2020, while the remaining 20 MW will be added in the second half (H2) of 2022. 

In addition, the company allocated $100 million for purchasing minority interests in subsidiaries as well as acquiring and establishing new entities.

The company raised its direct and indirect stake in Alexandria Fertilizers Co to 55.4% from 45.57% for a total value of $50.02 million. 

It has recently received the Financial Regulatory Authority's (FRA) approval to establish a micro-finance company called Bedayti with an issued capital of EGP 50 million. 

In the first half (H1) of 2021, EKH reported net profits of $109.29 million, up by 36% year-on-year (YoY) from $80.24 million.