PIF’s Egyptian Investment Arm to Acquire Shares in Education-Focused Social Impact Capital

PIF’s Egyptian Investment Arm to Acquire Shares in Education-Focused Social Impact Capital
  • Conditional agreement between Social Impact Capital and Saudi Egyptian Investment Co. (SEIC) to boost financial support.
  • SEIC to subscribe for new shares in SIC, aiming to increase total shareholding in CIRA Education.
  • Plan to delist CIRA from the Egyptian stock exchange and transform it into a key player in the regional education sector.

Egypt’s Social Impact Capital is poised for a substantial financial infusion following a conditional agreement with the Saudi Egyptian Investment Co.

Under the terms, SEIC will subscribe for new shares in SIC, the principal shareholder of CIRA Education, listed on the Egyptian Stock Exchange.

This financial arrangement aims to facilitate SIC’s acquisition of additional shares in CIRA, potentially increasing SIC’s total shareholding to between 75 percent and 100 percent for 14 Egyptian pounds ($0.29) per share.

The move intends to delist CIRA from the Egyptian exchange and position it as a significant regional player in the education sector.

SEIC, wholly owned by the Saudi Public Investment Fund, is expected to play a vital role in enhancing CIRA’s market position, benefiting from its partnership with one of Egypt’s largest fully integrated education service providers in the private sector.

Completing this conditional agreement is subject to successful due diligence, securing regulatory approvals, and executing definitive agreements.

Following these steps, the SIC-SEIC consortium plans to extend a mandatory tender offer to CIRA’s other shareholders on the Egyptian stock exchange following existing laws and regulations.

CIRA’s initial public offering in 2018 was valued at 1.2 billion Egyptian pounds. The company’s IPO saw selling shareholders SIC alongside other minority reserve holders offer 207.26 million shares, or 37.8 percent of CIRA, to institutional and retail investors for 6 Egyptian pounds per share.

Additionally, SEIC has been a major investor in Egyptian companies, acquiring a 25.01 percent stake in state-owned fintech giant e-Finance in 2023 and minority stakes in three other Egyptian state-owned companies with a total investment of $1.3 billion in 2022.

These companies include Abu Qir Fertilisers and Chemical Industries, Misr Fertilisers Production Co., and Alexandria Container and Cargo Handling.

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