Saudi Egyptian Investment Co. to Boost Egypt's SIC with Potential $85.5M Investment in CIRA Education
Egypt's Social Impact Capital (SIC) is set to receive a financial boost from the Saudi Egyptian Investment Co. (SEIC), with SEIC agreeing to buy new shares in SIC.
This deal will allow SIC to acquire more shares in CIRA Education, a company listed on the Egyptian Stock Exchange, potentially increasing SIC's ownership to between 75% and 100%.
The goal is to delist CIRA and make it a major player in the education sector in the region.
SEIC, owned by the Saudi Public Investment Fund, will help enhance CIRA's market position.
CIRA, one of Egypt's largest education service providers in the private sector, is set to benefit from a partnership with the SIC-SEIC consortium.
The deal is subject to due diligence, regulatory approvals, and definitive agreements.
Once completed, a mandatory tender offer will be extended to CIRA's other shareholders on the Egyptian stock exchange.
CIRA had an initial public offering in 2018 with a market value of 1.2 billion Egyptian pounds.
The IPO saw SIC and other reserve holders sell 207.26 million shares, or 37.8 percent of CIRA, to investors at 6 Egyptian pounds per share.
In 2023, the Sovereign Wealth Fund of Qatar, known as the Qatar Investment Authority (SEIC), increased its stake in Egyptian state-owned fintech company e-Finance to 25.01 percent.
This follows an initial investment of 25 percent in 2022, making SEIC the largest shareholder.
Additionally, in 2022, SEIC invested a total of $1.3 billion in three other Egyptian state-owned companies: Abu Qir Fertilisers and Chemical Industries, Misr Fertilisers Production Co., and Alexandria Container and Cargo Handling, by acquiring minority stakes in each.