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Thursday, 27 May 2021

Misr Insurance makes a big education play

Misr Insurance Holding (MIH) is planning on forming an education platform with an initial investment capital of EGP 700-800 mn, MIH chairman and managing director Basel El Hini told Enterprise today. MIH plans to partner with as of yet unnamed education operators, and a private equity firm on the new platform, who will all contribute 70% to the investment capital, with the remainder to be financed through debt, El Hini added. MIH itself will invest EGP 125 mn in the new entity and hold a 16.5% stake in the entity, told Al Mal in a separate interview

Greenfields and M&As in the works: The platform will focus initially on schools over its first three years, before expanding to universities, El Hini said. And while the platform does plan on investing in new greenfields, El Hini tells us this does not preclude M&As.

The move is part of MIH’s strong push into education and healthcare, El Hini told us without revealing further details.


Vertical integration in the works for CIRA: Leading private-sector education provider Cairo for Real Estate and Investment (CIRA) is planning to acquire a 40% stake in school furniture manufacturer Global Furnitures Company, CIRA said in a bourse filing (pdf). The move — which is likely a vertical integration that would see CIRA build school tables and other furniture for its schools and universities — will be followed by a EGP 14.5 mn land purchase in Badr City to build a furniture factory, statement notes. CIRA owns Badr University, the likely recipient of the manufactured furniture.

CIRA’s board also approved raising the company’s stake in Starlight Education (which indirectly owns British Columbia Canadian International School (BCCIS) in Shorouk City) to 80%, up from a current 60%, the statement says. The company is planning to acquire the additional shares, sources in the company tell us. CIRA had acquired a majority stake in Starlight Education back in 2019 as part of its growth strategy. CIRA will pay EGP 58.3 mn in total for both the Global Furnitures Company and the Starlight acquisitions.

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