The Sovereign Fund of Egypt (TSFE) is planning to establish a $3-4bn fund for asset offerings with the aim to provide attractive investment opportunities that meet demand of global sovereign funds, as well as specialized funds.
Ayman Soliman, CEO of TSFE, said that the new fund will provide investment opportunities worth hundreds of millions of dollars which will contribute to attracting foreign direct investment to Egypt, as well as maximizing the value of state assets.
Soliman told Daily news Egypt that the new fund aims mainly to speed up the subscription process for companies and expand the base of private ownership, despite the absence of favourable market conditions.
He pointed out that the conditions of the capital market and the extent to which it accommodates IPOs is a matter beyond everyone’s control, which prompted offering minority stakes in government owned companies to strategic investors through an asset offering fund.
He pointed out that the strategic investors are selected according to diverse criteria. The first is that the strategic investor should present an added value for the target company and maximize its value, to support the public offering.
He stressed that the fund will work to seize the opportune window in the market to complete the offerings at the best possible valuation for the companies.
He noted: “We have selected a list of assets that will be included in this fund, and we have already contacted several potential partners.”