Saudi Arabia buys stake in largest Egyptian company

Egyptian media announced that the Egyptian Cabinet agreed to sell the Egyptian Gas Holding Company (GASCO) stake in Misr Fertilizer Production Company (MOPCO) to the Saudi Investment Fund.

Sources have confirmed that the deal is valued at £1 billion, two hundred and ninety-nine million, one hundred and fifty-four thousand, four hundred and seventy pounds in exchange for the purchase of GASCO’s entire holding in Misr Fertilizer Production Company, which amounts to $5.72. % of the company’s total shares, from 13 million and 100 thousand 277 shares.

The sources indicated that the price of the shares was set at 99.17 Egyptian pounds and that this price was determined based on the recommendation of an accountant from the central office of the Ministry of Petroleum. The Central Authority also recommended that the Egyptian General Petroleum Corporation pay 25% of the total Egyptian pounds of the contract (in addition to the contract value) to Gasco as a result of the settlement of contracts between the Oil Authority and the Saudi Egyptian Investment Company.

The sources indicated that the Council of Ministers authorized the chairman and managing director of the company to complete the process of selling shares and related contracts, and to sign all contracts and documents related to the implementation of the transaction, in accordance with legal procedures in this regard. .

The entry of the Saudi Investment Fund after Abu Dhabi investment holding company (Alpha Oryx Limited) acquired a 20% stake in the company, the share of the Ministry of Finance fell to 6% from 26% in April last year at $266.5. million at a price of $5.8.

Although the UAE and Saudi Arabia have acquired shares in the company, the Egyptian government still owns the largest share of the company as the Egyptian Petrochemical Holding Company (Echem) owns 30.75%, the Egyptian Natural Gas Holding Company (EGAS) owns 7.62%. , and the National Company Investment Bank owns 12.81% of the shares of the company, Misr Insurance Company 1.15%, Misr Life Insurance Company and Arab Petroleum Investments 3.03%, and individuals through a public offering 11, 93% shares. % share of the company.

Source: Cairo 24