UA-R-GC-1914-01-01-1989-11_Page-007

13. Report of the LE Investment Committee - Mr. Hyde advised the Board that the UEEF showed a 30% return on its investments during the 1988/89 fiscal year and briefed the Board on the current UEEF investments as follows: Cairo Beyera~s & Industrial Co .. S.A.E. - There has been no improvement in perfor­mance and prospects are not good. The UEEF has had all of its loans repaid and is fully reserved.. . Arab Aluminum S.A.E. - Continues to perform well. Chloride Egypt. S.A.E. - Continues to perform well. Colgate-Palmolive (Egypt) S.A.E. - Information on Colgate's dividend is expected later this year. The Committee agreed to participation in the capital increase up to a ceiling of LE75,OOO. Mr. Hyde reported on several new investment opportunities: Vespa PrQject - Because of potential problems in supply of kits from Piaggio's Indian associate the Committee decided against any investments at this time. It was agreed that the UEEF might come back to this proposal should conditions permit. Investment in Quoted Securities - While the Committee felt that there is an element of risk in the purchase of shares, it felt that over the long run these would be good invest­ments. It was noted that analyzing the market would be difficult because there are no in­dices with which such an analysis could be made. The Committee agreed that LEI mil­lion would be put aside for this investment and that Mr. Hyde would meet with Mr. Maher Fahmy. National Company for Industries - Mr. Snaith described the investment opportunity in a privately held company currently producing aluminum seals and expanding into other "niche" markets such as wooden sticks for frozen confectioneries. Sales up to September 1, 1989 were LEl.8 million of which LE900,OOO was profit. The family -held company is in the process of constructing a new plant in Sadat City for this purpose. An invest­ment ofLEl.5 million would purchase one-third of the company. The Committee felt that the investment merited further investigation and advised Mr. Snaith that an audit should be made of the company. Hotels - The Committee discussed proposed investments in two hotels, one in Dahab and the other in Quseir, to be operated by Movenpick Hotels International. The proposed investment would be up to LE3 million (LE1.5 million in each or LE3 million in one or the other). This would produce a 5 to 10% shareholding. The Committee was in princi­ple favorably disposed to these proposals, but decided that further time was required for review of the feasibility studies before any definitive investment decision could be reached. -