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26 May 2024

Egypt's Raya to establish a mortgage finance firm

By Agencies


Raya Technology and Communication said it will establish a mortgage finance services company with preliminary paid-in capital of 5 million Egyptian pounds ($904,000) to boost expansion plans.

Medhat Khalil, Raya Chairman, told Reuters on Wednesday the new company will be a vehicle for financing Raya's partnership with the government to develop a new 70-acre (28-hectare) call centre park in Maadi, south of Cairo.

"It will also help us maintain and expand our retail outlet network, in the face of rising rental costs, by buying more stores," he added.

Khalil said the capital of the new company would jump to more than 200 million pounds when it begins operating Raya's new call centres and that it will not have any activities other than information technology development.

The company posted a 13 per cent rise in net profit in the first nine months of 2007 to 75.2 million pounds.

Earlier this year Raya rejected a takeover bid by Orascom Telecom after an independent valuer found the offer undervalued the technology and communications firm.

Shares in Raya, which has a market capitalisation of 768.15 million pounds, were trading 1.6 per cent higher at 13.69 pounds by 0911 GMT. (Reuters)