EK Holding's management has confirmed to us that there is no basis of truth to the rumours that have been circulating that it is looking for potential acquisition targets. While the company's balance sheet is cash-rich and could easily fund sizeable acquisitions, it has seen no attractive acquisition targets. In addition, its recent strategy has focused on cleaning up its non-performing and loss-making assets, such as the recent deconsolidation of its E&P player (Tri-Ocean Energy – TOE).   Our view on the company has not changed; Buy: We remain Buyers of EK Holding as the company i) is trading at undemanding valuations at a 2016e P/E of 8.4x; ii) offers an attractive hedging opportunity against the EGP devaluation, with the stock denominated in USD, and operations are mostly immune; iii) has a strong cash-rich balance sheet; and iv) presents a lucrative dividend return to shareholders of 6% in 2016 on the USD (based on today's share price). (Company management, Ahmed Hazem Maher)   Egyptian Kuwaiti Holding: USD0.49 as of 18 July 2016, Rating: Buy, FV: USD0.80 per share, MCap: USD502mn, EKHO EY / EKHO.CA