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Sunday, 10 April 2022

ADQ could buy up National Investment Bank’s entire stake in Abu Qir

Abu Dhabi wealth fund ADQ is on course to acquire the National Investment Bank’s (NIB) entire 21.5% stake in Abu Qir Fertilizers as part of its USD 2 bn investment in Egypt, sources told Bloomberg Asharq, without disclosing the value of the sale. A senior exec at NIB would neither confirm or deny the news when we asked yesterday, but did confirm negotiations are ongoing between ADQ and the government committee managing the state privatization program.

REMINDER- ADQ is reportedly looking at state-held stakes in four other EGX-listed companies. The wealth fund is reportedly eyeing up to 18% of private-sector bank CIB (acquired by state vehicles as part of the CBE’s asset buying program to shore up the EGX in the early days of the pandemic) and an unknown stake in EGX-listed fintech player Fawry. Shares in state firms Mopco and Alexandria Containers are also reportedly in play, as may be stakes in privately held companies.

We’re expecting more details soon: Sovereign Fund of Egypt head Ayman Soliman said last week that details on ADQ’s investment are expected “within days.” ADQ has appetite for companies in sectors including infrastructure, education, healthcare, and financial inclusion, Soliman told Zawya last week.

The investment signals “renewed confidence” in the EGX, former head of the Egyptian Private Equity Association Hani Tawfik told Asharq.

Background: NIB, Abu Qir’s largest shareholder, sold 42.4 mn shares in the company and reduced its stake from 24.9% to 21.5% late last year. Institutional and individual investors now hold a combined 21.0% in the firm, while state-owned firms hold the balance.

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