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Sunday, 11 July 2021

SFE loves pharma manufacturing, confirms it’s bidding for a piece of Amoun with ADQ

The Sovereign Fund of Egypt has plenty of appetite for pharma, with CEO Ayman Soliman telling Hapi Journal the company is in talks with potential partners to invest in domestic pharma manufacturing targeting both the domestic and export markets. Data from the government’s Unified Procurement Authority will, in part, guide its choices on what products have the best local prospects. The story doesn’t say how much the SFE will look to invest in manufacturing, nor does it specify whether it’s looking at greenfield or brownfield targets.

And it’s now official: The SFE will partner with Abu Dhabi sovereign wealth fund ADQ in the acquisition of 100% of domestic manufacturing powerhouse Amoun. Soliman confirmed that new investments in manufacturing will take place alongside the fund’s acquisition of a stake in Amoun Pharma, a transaction being led by ADQ. The SFE had reportedly joined ADQ in the bid for Amoun back in February, but the story was never confirmed. A subsidiary of ADQ confirmed at the end of June that it’s still aiming to buy Amoun via a mandatory tender offer that could be worth as much as EGP 10.3 bn. Amoun is presently a unit of Canada’s Bausch Health.

Healthcare real estate and logistics are also getting some love. The fund is looking to invest in real estate projects that could be repurposed as hospitals, in partnership with health operators. It is also in the process of establishing a logistics company to invest in supply warehouses and build logistics hubs for the private sector and e-commerce companies. Partnerships in the sector will be finalized in the coming six months, Soliman added.

BACKGROUND: Healthcare is a top priority for the fund, which has made several moves into the sector since the onset of the pandemic. Other than a USD 300 mn joint venture with Concord International Investments in May, the SFE was reportedly eyeing a stake in state pharma company Chemical Industries Development. Healthcare is one of four previously announced sub-funds the SFE is carving out, alongside financial services, tourism and real estate, and infrastructure.

The news comes just one week after the SFE said it would invest in Lighthouse Education, a new platform with partners including Misr Ins. Holding Company (MIH), Banque Misr, and the Suez Canal Bank. The Lighthouse transaction is part of an EGP 1.75 bn push into K-12 education announced earlier this month; partners include Egyptian banks, among other investors. We’ll have more on Lighthouse’s plans in tomorrow’s Blackboard in EnterpriseAM.

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