The Clap
According to sources, the Saudi Public Investment Fund acquired stakes in 4 different companies in the EGX for around $1.3 billion.
The Deets
The companies are MOPCO (MFPC), eFinance (EFIH), Abu Qir (ABUK), and Alexandria Containers and Cargo Handling (ALCN).
The prices of each deal are as follows:
-MOPCO: EGP 7.1 billion at EGP 123.9 per share
-eFinance: EGP 7.5 billion at EGP 16.22 per share
-Abu Qir: EGP 7.2 billion at EGP 29.07 per share
-Alex Containers: EGP 3 billion at EGP 10.13 per share
Notable Sellers
Sources say that NIB sold a 25% stake in eFinance. In addition to that, Al Ahly Capital, Misr Insurance, Misr Life Insurance, and the Industrial Development Authority exited from Abu Qir.
The most notable seller of Alexandria Containers was the Holding Company for Maritime and Land Transport, with a 20% stake.
In addition to that, the NIB and GASCO sold their stakes in MOPCO.
Background
In April 2022, KSA signed an agreement with Egypt to direct $10 billion in investments into Egypt, in collaboration with the PIF and the Sovereign Fund of Egypt.
Wave of Acquisitions
These acquisitions come within a recent wave of acquisitions, which included ADQ’s acquisition of 5 listed companies in the EGX.
Why this Matters
The acquisition represents more than ⅕ of FDI in Egypt for 2020-2021. Analysts believe that these acquisitions send a positive signal regarding the market, as these deals are considered long-term investments.
PIF acquires stake in 4 EGX listed companies ‼️
