Today: Al Baraka Bank Egypt has submitted a mandatory tender offer to acquire up to 90% of Al Tawfeek Leasing through a share swap agreement valued + we have the latest financial results from MM Group.

🔔 EGX30 ended -1.0% by market close at 47,001 points, the EGX70 fell 0.9% to 12,706 points, and the EGX100 fell 0.9% to reach 17,722 points.

💸 The number of transactions reached 151,125 spread across 2,030,468,080 stocks leading to a turnover of EGP 5.760 billion.

🏷️ International investors were the only net sellers.

📈 Top gainers for the market as a whole included Nozha International Hospital (+5.5%), Arabian Cement Company (+5.3%), and Misr National Steel - Ataqa (+5.3%).

📉 Top losers for the market included Al Tawfeek Leasing Company (-9.8%), Creast Mark For Contracting And Real Estate Development (-7.1%), and Osool ESB Securities Brokerage(-6.4%).

⬆️ Top gainers for EGX30 included Arabian Cement (+5.3%), Heliopolis Housing (+2.4%), and Misr Cement (+0.5%).

⬇️ Top losers included Abu Qir Fertilizers (-3.8%), Edita (-3.5%), and Valmore Holding -EGP (-2.5%).

Other Important Stats: 

🧈 24K Gold reached EGP 7,852 per gram, down 0.4% day-on-day and down 3.9% month-on-month.

💲 The USD reached EGP 52.75 at the National Bank of Egypt.

Al Baraka Bank Egypt (SAUD) has taken new steps toward executing a mandatory tender offer aimed at acquiring a controlling stake in Al Tawfeek Leasing (ATLC), according to a disclosure filed with the EGX on Thursday.

The bank’s board approved the findings of an independent financial advisor, BDO Keys Financial Consulting, which outlined the fair values of both entities involved in the transaction. The report set the fair value of Al Baraka Bank Egypt’s share at EGP 26 per share, while valuing Al Tawfeek Leasing’s share at EGP 4.988.

Based on these valuations, the board also approved a share swap ratio of 0.1919 newly issued shares in Al Baraka Bank Egypt for every one share held in Al Tawfeek, forming the basis of the proposed acquisition structure.

Share-based acquisition structure

The bank submitted on Thursday a mandatory tender offer to acquire a stake of no less than 51% and up to 90% of Al Tawfeek’s shares. The transaction will be executed exclusively through a share swap mechanism, with no cash alternative offered to shareholders.

To facilitate the deal, the board approved a capital increase of up to 63.225 million shares, which will be allocated entirely to Al Tawfeek shareholders who tender their shares in response to the offer. 

A quick refresher on Al Tawfeek Leasing

Established in 2005, Al Tawfeek Leasing is a prominent player in Egypt’s non-bank financial services (NBFS) sector .

Diversified Services: While its core business is financial leasing (machinery, vehicles, and production lines), it evolved into a "one-stop shop" by adding factoring in 2020 and mortgage finance in 2024.

Sharia Compliance: The company operates as a Sharia-compliant institution, making its financial products attractive to investors seeking Islamic finance solutions.

Strong Performance: In FY-2025, the company reported a consolidated net profit of EGP 270.6 million, representing a 25% year-over-year growth.

Why Al Baraka Bank is Acquiring It: The Strategic Appeal

Al Baraka Bank’s move to acquire up to 90% of the company (from its current small holding of around 7.6% as of October of last year) is driven by several attractive factors in the Egyptian market:

1. Synergistic Islamic Finance Models: Both institutions are rooted in the Dallah Al-Baraka Group ecosystem and follow Sharia principles. Integrating a leasing arm allows the bank to offer a broader range of Islamic asset-backed financing under one umbrella.

2. Capturing High-Growth NBFS Margins: The non-bank financial services sector in Egypt typically generates higher margins than traditional commercial banking. Al Tawfeek Leasing operates in leasing and factoring, offering Al Baraka Bank exposure to these segments.

3. Portfolio Resilience & Quality: Al Tawfeek Leasing has a proven track record of successful securitization—completing six transactions totaling approximately EGP 8.3 billion, according to its website. This demonstrates a liquid, high-quality asset base that strengthens the bank’s overall consolidated balance sheet.

Stocks’ performance

It’s worth noting that Al Tawfeek Leasing’s share price dropped 9.8% following the news on Thursday to EGP 4.87 (slightly below the fair value assessment by the financial advisor), however its share price is still up 32% over the past 12 months. Meanwhile, Al Baraka Bank’s share price rose 2.8% to EGP 19.79  (well below the fair value assessment), on Thursday, bringing its gains over the past 12 months to 63.4%.

MM Group for Industry and International Trade (MTIE) delivered strong financial results in FY25, with its revenues rising 47.9% year-on-year to reach EGP 21.2 billion, according to its latest earnings release. Net income rose 17.1% year-on-year to EGP 1.2 billion, supported by solid growth across all operating segments.

A quick refresher on MM Group

MM Group operates as a distribution and trading company in Egypt, with activities spanning consumer electronics, automotive distribution, and non-bank financial services. The company distributes products for international brands including Samsung, Apple, and Huawei, and holds distribution rights for automotive brands like Range Rover, Jaguar, Maserati, and Bentley. It has also been expanding into non-bank financial services through investments in Ebtikar, Basata, and Cashless.

Revenue breakdown by segment

The consumer electronics segment accounted for 80.8% of total consolidated revenues in FY25, recording a 46.4% year-on-year increase to EGP 17.1 billion, compared to EGP 11.7 billion in FY24.

The automotive segment represented 17.5% of total revenues and recorded a 57.1% year-on-year increase, with revenues reaching EGP 3.7 billion, up from EGP 2.4 billion in the previous year. The number of cars sold rose 17.8% year-on-year to 513 units, compared to 435 units in FY24.

The telecom segment contributed 1.5% of total revenues, with revenues increasing 32.8% year-on-year to EGP 313 million, compared to EGP 236 million in FY24.

Stock performance

The company’s share value has seen a good start to the new year, with its share price rising 5.4% since the beginning of 2026. This brings its gains over the past 12 months to 24.7%.

Capital increase plan

In parallel with its strong performance, the company’s board approved a plan to increase issued and paid-in capital from EGP 1.17 billion to EGP 1.40 billion.

The increase will be carried out through the distribution of bonus shares valued at EGP 234.14 million, with shareholders to receive 0.20 bonus shares for each original share held. The distribution will be funded from profits for 2025.

April 1, 2026:

Giza General Contracting and Real Estate Investment - dividend distribution date for EGP 0.5 per share. The record date is March 31.

April 9th:

Commercial International Bank - dividend distribution date for EGP 6 per share. The record date is April 6.