Cairo – Egypt’s new sovereign wealth fund (SWF) aims to acquire a 30% stake in power generation plants co-established by Siemens AG, Bloomberg reported.

The transaction will be part of the fund’s “project pipeline into the sector, then an investor would be selected to hold the remaining stake,” the fund’s CEO Ayman Soliman said.

Six unidentified international investors have voiced their interest in the deal that involves three state-run plants which cost nearly $6.62 billion, Soliman added, noting that a financial adviser to be chosen next week will arrange the negotiations.

The newly-appointed CEO expects the agreement to be finalised with investors in 2020.

In July 2018, the Egyptian president Abdel Fattah El-Sisi inaugurated three power plants with a combined capacity of 14.4 gigawatts (GW) co-established by Siemens, Orascom Construction, and Elsewedy Electric in the new administrative capital, Beni Suef, and Burullus.

In May, the electricity minister Mohamed Shaker said that Blackstone Group unit Zarou Ltd. and Edra Power Holdings Sdn Bhd of Malaysia expressed their interest in the plants, according to Bloomberg.

Egypt’s first-ever sovereign fund has an issued capital of EGP 5 billion and an authorised capital of EGP 200 billion.

Source: Mubasher

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