Egypt’s Social Impact Capital Receives Boost with Agreement from Saudi Egyptian Investment Co.
In a groundbreaking move, Egypt’s Social Impact Capital is poised to receive a substantial financial injection following a conditional agreement with the Saudi Egyptian Investment Co.
Transforming CIRA Education into a Regional Education Powerhouse
Under the terms of the deal, SEIC will subscribe for new shares in SIC, the principal shareholder of CIRA Education, listed on the Egyptian Stock Exchange. This strategic financial arrangement is aimed at facilitating SIC’s acquisition of additional shares in CIRA, potentially increasing its total shareholding to between 75 percent and 100 percent at a price of 14 Egyptian pounds ($0.29) per share.
The ultimate goal of this move is to delist CIRA from the Egyptian exchange and position it as a major regional player in the education sector.
SEIC’s Crucial Role in Boosting CIRA’s Market Position
SEIC, a wholly owned entity of the Saudi Public Investment Fund, is set to play a pivotal role in enhancing CIRA’s market position. As one of the largest fully integrated education service providers in Egypt’s private sector, CIRA stands to benefit significantly from this partnership.
Future Plans and Expansion
The completion of the conditional agreement is subject to successful due diligence, securing regulatory approvals, and executing definitive agreements. Following these steps, the SIC-SEIC consortium plans to extend a mandatory tender offer to CIRA’s other shareholders on the Egyptian stock exchange in compliance with existing laws and regulations.
SEIC’s Track Record in Egyptian Investments
SEIC has been a major investor in Egyptian companies, with notable acquisitions in the past. In 2023, the investment entity acquired a 25.01 percent stake in state-owned fintech giant e-Finance. This followed its initial 25 percent stake acquisition in 2022, making SEIC the largest shareholder of e-Finance.
Additionally, in 2022, SEIC acquired minority stakes in three other Egyptian state-owned companies with a total investment of $1.3 billion. The companies include Abu Qir Fertilisers and Chemical Industries, Misr Fertilisers Production Co., and Alexandria Container and Cargo Handling.