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05-Dec-2016

Privately-owned fertiliser producers cut supply to the Ministry of Agriculture awaiting adjustments in either gas or product prices

Alexandria Fertilizers Company (AlexFert) and other private fertiliser producers have decided to cut supply to the Ministry of Agriculture until a solution is provided from the government’s side for the gas price issue, which increased post flotation, according to Al Borsa. The news source added that fertiliser companies are pressuring the government to either increase fertilisers prices or adjust the natural gas pricing mechanism. It is worth noting that Egypt Kuwaiti Holding (EKHO) [EKHO.CA] owns 38% of AlexFert, which has to submit a quota of c17-20% of production at subsidised prices in the local market. (Al Borsa)   Egyptian Kuwaiti Holding: USD0.59 as of 04 December 2016, Rating: Buy, TP: USD0.80 per share, MCap: USD604mn, EKHO EY / EKHO.CA

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