The Sovereign Fund of Egypt (TSFE) has received bids to buy mineral water bottler National Company for Natural Water in Siwa (SAFI), sources close to the government IPO said.
Abu Dhabi food and beverage company Agthia Group is one among the prominent names in the race of local and Gulf-based firms competing to buy the Egyptian company.
Egypt started receiving offers from investors to buy shares of SAFI and Wataniya Petroleum, companies affiliated to the National Service Projects Organization (NSPO), the CEO of TSFE Ayman Soliman announced. The IPO is expected to be completed within a few weeks, after which shares of the two companies will be offered on the stock exchange later.
The sources pointed out that among the inquiries that the fund received from investors was the possibility of acquiring 100% of the company’s shares, in addition to the possibility of purchasing just the water bottling and packaging plant, without the rest of the company’s activities. Soliman stressed that no specific percentage has been identified so far, adding that investors have the right to apply for the purchase of any percentage in these companies. “TSFE aims to be very flexible and responsive to the market in its approach to sales,” adds Soliman.
During TSFE’s weekly meeting, Egypt’s Prime Minister Mostafa Madbouly, who is also the chairperson TSFE’s General Assembly, spoke about the government’s seriousness in implementing the proposals and its keenness to follow up the progress of work continuously.
Owned by one of the region’s largest holding company, Abu Dhabi-based ADQ, Agthia has completed a number of acquisitions in recent times to expand its operations in the MENA region. In Egypt, these include acquiring a majority stake of 75.02% in Ismailia Investments, a meat processing company better known as Atyab, and a 60% stake in Auf Group, one of Egypt’s largest snacks and coffee producer.
After a disappointing start, the Egyptian government is seeking to accelerate the offering programme, aiming to collect $2 billion during the current and coming months by concluding exit deals from a number of companies.
