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Change of plans for some Egyptian port companies, sources say:Port Said Container Handling (PSCCHC) and Damietta Container Handling (DCHC) are set to cancel their temporary listing on the Egyptian Stock Exchange (EGX) — which goes back to 2022 — and stakes in the companies will instead be offered to strategic investors, an Egyptian government source told Enterprise Logistics, confirming reports from Al Borsa published earlier this week.
Why the switch in track? Listing the companies for minority shareholders on the EGX proved to not be financially viable, as it would not provide the scale of investments needed to develop and grow the companies, the source explained. The government will now seek a strategic investor to manage and operate the companies through a usufruct arrangement in a bid to transform Egypt into a strategic hub for logistics services and transit trade, the source added.
There are already offers on the table: Egypt has attractive offers already in place from interested parties, the source said. Emirati and Qatari investors have displayed a serious interest in managing and operating the two companies — with negotiations with Egyptian officials ongoing, Al Borsa reported earlier this week. AD Ports reportedly submitted an initial offer in March 2023 to acquire a controlling stake in state-owned PSCCHC and DCHC, against competition from Qatar Investment Authority’s investment arm Maha Capital. Talks with Maha Capital stalled over the size of the stake on offer as Egypt’s Transport Ministry is reportedly reluctant to sign off on the Qatari fund acquiring a majority stake in the state-owned companies.
What’s the timeline? The offers are expected to be decided upon by June 2024, the source told Enterprise, without disclosing further details.
