Week ending February 13, 2021

EGX 30: 11,546 (-0.5%) weekly change, (+6.5%) YTD  
Traded Value 1W Avg: EGP 574M , (-7.1%) above 90D Avg.  
EGP:USD: 15.62 (-0.7%) weekly change 

A New(er) ThndrClaps 

Starting next week, you’ll notice that we’ve made a few changes to Thndrclaps. 

In order to make sure that the news we’re sending you stays fresh. You’ll find us in your inbox every Monday morning instead of Sunday. Thanks to everyone who participated in our survey, helping us tailor our content better to fit your needs.

Local Pick-up

Orascom Investment Holding to start horizontal demerger

Orascom Investment Holding (OIH) suspended trading its shares on Thursday, to start spinning out its assets including Sarwa Capital & Beltone Financials to form Orascom Financial holding (OFH). The split aims to distinguish between the financial services sector and the other sectors, which will be managed by OIH. The demerger is expected to be complete by the end of the month. (Enterprise)

Banque Misr plans to acquire 90% of CI Capital

Banque Misr plans to acquire CI Capital Holding, increasing its stake from 24.7% to 90%. The Mandatory tender offer (“MTO”) targets 653M shares at EGP 4.7 which could give the transaction a potential value of EGP 3B. (Almal News

Speed Medical to acquire Alsafwa Hospital for EGP 185M

Speed Medical Hospital proposed an acquisition deal for Al Safwa Hospital’s 6th of October branch for EGP 185M. The move will push Speed Hospital’s stake to over 50% of Al Safwa Hospital, allowing it to have the right of the management.  (Almal News).

Global Pick-up

Tesla buys USD 1.5B worth of bitcoin

Bitcoin surged by 20% to a record high of USD 47K after Tesla announced it has bought USD 1.5B worth of Bitcoin, the biggest investment a company made in bitcoin. The move comes with the goal of diversification (hedging against the US dollar) and maximizing cash on return. The company also said it will start accepting payments in bitcoin for its products. (Robinhood Snacks)

Market wrap up

Stay informed by checking out our weekly wrap up of financial markets performance here.

Weekly Thunderstrike!

Warren Buffet achieved an aggregate return of 2,744,962% from 1965 to 2019, growing his wealth from USD 10,000 to around USD 90B.

Topic of the week – Mandatory Tender Offer (MTO)

A Mandatory tender offer is required when an acquirer exceeds a certain shareholding threshold in the target acquired company. The offer allows protection of interests of the minority shareholders as well as market stability. 

When you short-sell a stock, you borrow shares from someone else with the promise to return them in the future. It’s a way to take advantage of a stock that you believe will decrease in price. When the time comes to return the stock (if the stock price falls), you can then buy it a lower price than you had originally sold the borrowed stock—making the difference in price as profit.