The state-owned investment company, Abu Dhabi Development Holding, announced its plan to invest in three Egyptian companies, that are among seven companies in the portfolio of the Pre-IPO Fund of the Sovereign Fund of Egypt (TSFE).
The deal, which is part of the government’s exit plan for 1.9 billion-worth assets, was signed in July 2023, after a memorandum of terms and conditions was agreed upon between the parties.
Abu Dhabi Development Holding will invest that amount to buy stakes in three Egyptian government companies, with a guaranteed return of 8% after tax deduction annually for four years.
The deal involves acquiring 25% of the National Drilling Company (NDC), 30% of the Egyptian Ethylene and Derivatives Company (ETHYDCO), and 35% of the Egyptian Linear Alkyl Benzene Co. (ELAB).
It is expected to be completed in this quarter,
Once an exit of the investment occurs through a public offering or a sale to a strategic investor, the guarantee will be reduced.
The deal was signed in July 2023, after a memorandum of terms and conditions was agreed upon between the parties.
The three companies are in the portfolio of the Pre-IPO Fund of the Sovereign Fund of Egypt (TSFE), which aims to prepare state-owned companies for listing on the stock market or selling to investors. The other four companies include Misr Technology Services, El Mostakbal for Urban Development, Misr Life Insurance, and Salhia Investment & Development Company.
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