CAIRO – August 10, 2022: The Sovereign Wealth Fund of Egypt (TSFE) on Wednesday announced the completion of the acquisition by the Saudi Egyptian Investment Company, wholly owned by the Public Investment Fund (PIF), of minority stakes state-owned shares in four major Egyptian companies listed on the Egyptian Stock Exchange, worth $1.3 billion.
The companies are Abu Qir Fertilizers Co., Misr Fertilizers Production Company (MOPCO), Alexandria Containers and Cargo Handling Co. and e-finance.
“This agreement is part of the state’s plan to broaden the ownership base and encourage foreign direct investment,” said Hala El-Said, Egypt’s Minister of Planning and Economic Development. Chairman of the Sovereign Fund of Egypt.
The agreement also supports Egypt’s sovereign wealth fund strategy by attracting Arab and foreign investors and offering promising investment opportunities in various economic sectors.
El-Said added that this agreement reflects the foreign investor’s confidence in the Egyptian economy, as it is one of the promising strategic markets that offers many attractive investment opportunities.
This agreement comes to activate the agreement between the Arab Republic of Egypt and the Kingdom of Saudi Arabia which was signed last June regarding the investment of the Saudi Public Investment Fund in Egypt in cooperation with TSFE and to strengthen economic relations. between the Arab Republic of Egypt and the Kingdom of Saudi Arabia.
On Tuesday, the Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund, agreed to buy 25% of the shares of Misr Fertilizer Production Company (MOPCO) at a price 25% higher than the share price on the stock exchange. , according to the Eastern Economy website quoting a government official, who requested anonymity.
MOPCO’s stock traded on the Egyptian Stock Exchange (EGX) on Monday at LE 104.89, down 0.6%, bringing the company’s market value to around LE 24 billion, while its capital is LE 2.291 billion, divided among 229.117 million shares, with a nominal value of LE 10 per share.
The Saudi sovereign wealth fund will acquire stakes held by the Ministry of Finance, the National Investment Bank, Gasco and Misr Life Insurance in the company.
At the end of March 2022, Egypt and Saudi Arabia signed an agreement in this regard, and the Egyptian cabinet indicated at the time that it was aiming for investments of 10 billion dollars in cooperation between the Egyptian Sovereign Fund and the Saudi Public Investment Fund.
The Public Investment Fund’s net assets stand at $620 billion, according to the latest data from the Sovereign Wealth Fund Institute, and it ranks sixth in the world, as the Kingdom aims to reach $10 trillion. riyals.
Mopco, owned by the Egyptian government, was established in 1998 and specializes in the production of fertilizers, ammonia and nitrogen. The company’s profit jumped to LE 2.08 billion in the first quarter of 2022 from LE 792.7 million a year earlier, while revenue rose 111.5% in the same period to reach LE 4.21 billion.
MOPCO is one of the largest exporters of urea in Egypt, producing approximately two million tonnes per year, and is exported to Europe, Latin America, Asia and Africa.