Dubai-based Aramex and Egypt’s Orascom in talks on logistics areas
The Dubai-based courier company Aramex said it was in talks with Egypt’s Orascom Telecom Media and Technology (OTMT) to develop logistics areas in the Arab world’s most populous country.
Aramex confirmed it was in talks with OTMT in a stock exchange filing, but said it had not signed an agreement yet.
On September 8, OTMT told the Egyptian stock exchange that it aimed to establish five logistics areas in five Egyptian governorates with an investment of 1 billion Egyptian pounds (Dh469 million).
OTMT said that a partnership deal with Aramex would have to set up a joint venture between the two companies– with OTMT holding a 51 per cent stake and Aramex owning 49 per cent.
“The logistics sector in Egypt is underpenetrated,” said Wafaa Baddour, the head of Mena consumer and general industries at the Cairo-based investment bank EFG Hermes. “There is definitely a big opportunity there. It will be a positive development if an agreement is signed with OTMT.”
OTMT is a holding company with investments in Egypt, North Korea, Lebanon, North African and Middle-Eastern countries.
Aramex last month posted a 15 per cent increase in second-quarter net profit to Dh92.6m, up from Dh80.8m a year earlier, thanks to growth in online shopping.
Revenue increased about 6 per cent to Dh967m from Dh915m.
The company said last month that it was forecasting at least 10 per cent net profit growth this year, but said the profit forecast depended on oil prices and currency fluctuations.
Aramex shares closed up 1.5 per cent higher at Dh3.25.
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Updated: September 10, 2015 04:00 AM