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M&A WATCH-
Leading Egyptian education provider CIRA Education majority shareholder Social Impact Capital (SIC) has submitted a mandatory tender offer to acquire up to an additional 48.78% of CIRA, according to a statement (pdf) from Egypt’s Financial Regulatory Authority. SIC currently holds a 51.2% stake in the country’s leading private education company. The offer is currently being reviewed by the FRA.
All part of PIF’s plan to take over CIRA: The Saudi Egyptian Investment Company — a wholly-owned subsidiary of the Public Investment Fund — said in May that it would buy into SIC. SIC used the cash injection to launch its mandatory tender offer for the rest of CIRA’s shares.
We’ve seen this movie before: PIF has a proven track record of turning national players into regional champions, with the global growth of born-in-Egypt driller Ades Holding being a case in point. Since acquiring Ades and taking it private, PIF has helped Ades land contracts in Saudi Arabia and new markets, refine its strategy, and go public again on Tadawul.
REAL ESTATE-
Sico Capital, the Saudi subsidiary of Bahraini investment bank Sico BSC, launched a USD 250 mn residential real estate fund, which has already acquired three projects in Riyadh, according to a press release.
TELECOM-
Mobily will deploy the first Saudi submarine cable connecting the Kingdom with Egypt in partnership with Telecom Egypt, Egypt’s state-run telecom operator, according to a Telecom Egypt statement. The cable, which is fully owned by Mobily, will run across the Red Sea and will be anchored at the Kingdom’s Duba landing station and its counterpart in Egypt’s Sharm El Sheikh. The project aims to enhance connectivity between Asia and Africa, and open access to potential connections to Europe.
TOURISM-
PIF-owned IT solutions firm Elm agreed to develop an e-platform for the Jeddah Historic District Program to monitor excavation and infrastructure projects in the area and automate the processing of municipal licensing requests, state news agency SPA reports. The partnership between Elm and the Culture Ministry-run program also includes establishing a project coordination office, operating a beneficiary communication center, and equipping a monitoring and control room.
DEBT WATCH-
#1- Glass manufacturer Obeikan Glass secured a SAR 50 mn shariah-compliant loan from Riyad Bank to finance its working capital needs, according to a filing to Tadawul. The loan will carry a three-year tenor.
#2- Middle East Pharma Industries (Avalon Pharma) obtained SAR 30 mn in a one-year shariah-compliant loan from Saudi Awwal Bank to fund its operations, it said in a disclosure to Tadawul.
#3- National Environmental Recycling (Tadweer) has lined up SAR 50 mn in a shariah-compliantloan from the Saudi Export-Import bank, it said in a filing to Tadawul. The one-year financing agreement will help it shore up liquidity to fund its working capital requirements.
M&A WATCH-
Asyad Group subsidiary Wafi Energy has finalized the purchase of a 77.4% majority stake in Shell Pakistan Limited, raising its total ownership to 87.8%, according to a press release. The Shell brand will continue operating in Pakistan through retail and brand licensing agreements, with SPL serving as the exclusive licensee, Dawn reports.
This has been in the works for a while: Plans for the sale of Shell’s assets in Pakistan were first made in June last year under the global energy giant’s plan to “high-grade its mobility network.” It later agreed in November to sell its majority interest in Shell Pakistan to Asyad’s Wafi Energy. The acquisition got the greenlight from Pakistan’s competition authority in July.
HOSPITALITY-
Albilad Capital acquired the 359-key Mövenpick Hotel and Residences in Riyadh’s Al-Ghadir district for around SAR 1 bn through its Albilad Hospitality Fund I, it said in a statement. The fund’s annual return on investment is expected to clock in at around 8.7% on average over the next 3 years.
STARTUP WATCH-
Edafa Ventures acquired a 35% stake in Cairo-born social networking platform Business Lobby for an undisclosed sum, according to a LinkedIn post. No further details were given.
This is the third investment made by Edafa in an Egyptian startup this week: The Saudi VC recently acquired a USD multi-mn “strategic stake” in Egypt-based corporate solutions app TaskedIn, and a 25% stake in Cairo-based edtech player Bonyan.
