Tourah Cement has announced that its BoD has approved to sell its land for the highest bid price of EGP2,700/sqm. The company has previously announced that it had held a public auction on 11 December for the sale of its land (land area of 392,000 sqm) located in Tourah district, Cairo, and has received the highest bid of EGP2,700/sqm during the auction.
 
Our view: Based on the highest bid it received, the sale of the land would fetch a one-off revenue worth EGP1.06bn. As per Tourah’s 3Q18 financials, the land has a book value of EGP42.3mn; hence, a sale at its highest bidding value would generate one-time profit worth EGP1.0bn, in our view. (Company disclosure, EFG Hermes estimates)