Saudi’s PIF in talks to acquire Egyptian companies in key sectors

Egyptian government to launch $5 bn in projects
Saudi’s PIF in talks to acquire Egyptian companies in key sectors
Riyadh (Photo from Reuters)

According to Daily News Egypt, Saudi’s Public Investment Fund (PIF) is currently engaged in advanced negotiations to purchase three privately-owned Egyptian companies operating in the healthcare, education, and real estate development industries. The real estate developer is recognized as one of the largest companies functioning within Egypt, insiders said.

During August 2022, the PIF successfully obtained minority ownership interests in four Egyptian companies. These companies are publicly listed on the Egyptian Stock Exchange (EGX). The collective value of these acquisitions amounted to $1.3 billion. The companies involved in the acquisitions were eFinance, Abu Qir Fertilizers and Chemical Industries Company. They also include Misr Fertilizer Production Company (MOPCO), and Alexandria Container and Cargo Handling Company.

Read more: PIF launches the Saudi Egyptian Investment Company

As part of their investment activities, the PIF acquired a 25 percent equity stake in eFinance from the National Investment Bank, with a value of approximately EGP 7.27 billion. Furthermore, they secured an estimated 20 percent ownership interest in Alexandria Container and Cargo Handling Company, a subsidiary of the Holding Company for Maritime and Land Transport.

In addition, PIF successfully obtained a stake of approximately 25 percent in MOPCO from three government entities. These are the Ministry of Finance, the National Investment Bank, and the Egyptian Natural Gas Company (GASCO). This particular stake was valued at EGP 7.1 billion, with a share price of EGP 123.

$5 bn in projects

In a related development, Egypt is set to commence a series of projects worth $5 billion between October 2023 and June 2024. The move comes as part of a larger initiative to bolster economic growth and provide support to the private sector in Egypt.

Furthermore, the government has unveiled plans to enact a comprehensive package of 27 reform measures. In addition, these measures will be categorized into three primary areas. These areas include asset sales and initial public offerings (IPOs). They also encompass fostering private sector investments and enhancing governance and transparency.

For more news on the economy, click here.