Government sources revealed to Daily News Egypt the details of the deal concluded last week by the Pre-IPO Fund affiliated to the Sovereign Fund of Egypt (TSFE) with the Abu Dhabi sovereign wealth fund ADQ to acquire 25-30% stakes in Egyptian Ethylene and Derivatives Company (Ethydco), Egyptian Linear Alkyl Benzene (ELAB), and Egyptian Drilling Company (EDC) for $800m.
The sources said that ADQ acquired about 27% of Ethydco for about $280m. The acquired stake belonged to the National Investment Bank and Egyptian Natural Gas Company (GASCO).
Moreover, ADQ acquired a 24% stake of the ELAB for approximately $170m. The acquired stake belonged to the Egyptian General Petroleum Corporation (10.5%) and the Ministry of Finance (13.11%).
The sources said that it was agreed to sell a 23% stake of the EDC for $330m. The Sovereign Fund of Egypt is currently working on transferring the targeted shares to the Pre-IPO Fund in order to complete the transaction.
The sources said that swap contracts were signed between all concerned government agencies and the TSFE in preparation for completing the necessary procedures for transferring targeted shares to the latter’s affiliated sub fund. The final contracts will be completed during the coming period.
Last week, the Egyptian government announced its exit from $1.9bn worth state-owned assets.
Egypt’s Sovereign Fund launched the Pre-IPO Fund with the aim of warehousing state-run companies to partly or fully sell them to strategic investors and maximize their values.
According to the sources, the portfolio of the Pre-IPO Fund includes seven government companies, Ethydco, ELAB, EDC, Misr Technology Services, Midar for Investment and Urban Development, Misr Life Insurance, and Salhia Investment and Development Company.