Egypt’s state-owned aluminum company Egyptalum plans to offer 65% of its planned capital increase to Saudi Arabia’s Public Investment Fund (PIF), at a value of $200m, out of the total $300m needed for the development process. The investment will rehabilitate the factory to produce efficiently for the next 20 years.
DNE has written earlier about the PIF’s plan to invest in Egyptalum, as a strategic investor, by taking part in increasing the company’s capital. It aims to maintain its current production capacity at a rate of 320,000 tonnes annually.
Mohamed El-Saadawi, head of the Metallurgical Industries Holding Company, said that one of the Arab sovereign funds will contribute to increasing the capital of the Egyptalum.
He added that the percentage will be subtracted from the rehabilitation value of $300m, through a capital increase; to finance development operations and maintain the current production capacity.
The ownership structure of Egyptalum includes the Metallurgical Industries Holding Company (89.83%), and Nasr Mining Company, one of the groups of the holding company, owning about 2.20% of the company’s capital shares.
The Saudi Egyptian Industrial Investment Company, affiliated to the PIF, last month acquired minority stakes in Abu Qir Fertilizers, Misr Fertilizer Production Company (MOPCO), Alexandria Container and Cargo Handling Company, and e-finance, with a total value of $1.3bn.