Saudi Arabia’s Public Investment Fund (PIF) is in advanced talks to acquire three private Egyptian companies in the healthcare, education, and real estate development sectors, according to sources close to the deals.

The sources, who spoke to Daily News Egypt on condition of anonymity, declined to disclose more details but confirmed that the PIF plans to close the three deals before the end of this year.

“The real estate developer is one of the largest companies operating in Egypt.”

The deals come after the PIF’s planned acquisition of the United Bank of Egypt fell through. The sources said that the PIF saw promising investment opportunities in the Egyptian market that were in line with its investment strategy.

In August 2022, the PIF acquired minority stakes in four Egyptian companies listed on the Egyptian Stock Exchange (EGX) for a total of $1.3 billion. The companies were eFinance, Abu Qir Fertilizers and Chemical Industries Company, Misr Fertilizer Production Company (MOPCO), and Alexandria Container and Cargo Handling Company.

The PIF purchased a 25% stake in eFinance from the National Investment Bank, valued at EGP 7.27 billion. Additionally, they acquired an estimated 20% stake in Alexandria Container and Cargo Handling Company, which is part of the Holding Company for Maritime and Land Transport.

Shares totalling 19.8% in Abu Qir Fertilizers Company were sold to the PIF by Al-Ahly Capital Company, owned by the National Bank of Egypt (NBE), the General Authority for Industrial Development, Misr Life Insurance Company, and Misr Insurance. The stake consisted of 250 million shares at a price of EGP 29.07 per share.

Furthermore, the PIF acquired a stake of approximately 25% in MOPCO from three government agencies: the Ministry of Finance, the National Investment Bank, and the Egyptian Natural Gas Company (GASCO). The stake was valued at EGP 7.1 billion, with a price of EGP 123 per share.

PIF is the sovereign wealth fund of Saudi Arabia. It is one of the largest sovereign wealth funds in the world, with total assets of over $750bn.

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