CAIRO – August 9, 2022: The Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund, has agreed to buy 25% of the shares of Misr Fertilizer Production Company (MOPCO) at a price 25% higher during the stock market action, according to the Eastern Economy website which quoted a government official, who requested anonymity.
The contracts will be signed and the deal executed today or tomorrow, a source told Al Sharq Business.
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 par 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.
Last April, Abu Dhabi Holding acquired a 20% stake in MOPCO for $266.5 million.
According to Al Sharq’s business, the Emirati company is currently in negotiations with the government to acquire an additional stake of around 10-15% in the Misr Fertilizer Production Company – MOPCO.
At the end of March, Egypt and Saudi Arabia signed an agreement in this regard, and the Egyptian Cabinet indicated at the time that it was targeting 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 urea exporters in Egypt, producing around two million tonnes per year, and is exported to Europe, Latin America, Asia and Africa.