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Monday, 12 September 2022

The Public Investment what?

AMOC responds to PIF rumors: Alexandria Mineral Oil Company (AMOC) has not received any information on the Saudi sovereign wealth fund’s reported intention to acquire a minority stake in the company, it said in a disclosure (pdf) yesterday in response to reports in the local press. Al Shorouk reported on Saturday that the Public Investment Fund (PIF) is interested in acquiring stakes in several leading EGX-listed petrochemical companies, including AMOC, under its pledge earlier this year to invest USD 10 bn in the country.

Market reax: AMOC was up 1.67% to EGP 4.30 at market close.

The PIF has been linked to many companies — but the fund has been tight-lipped: Anonymously sourced press reports have also linked Egyptalum and Egyptian Media Production City (EMPC) to the PIF in recent weeks though none have been publicly confirmed by the parties involved, with the target companies either being tight-lipped, unclear or disregarding the news altogether.

Two transactions we are sure about: Sources have told us in recent weeks that the PIF is interested in purchasing shares in Vodafone Egypt and is in talks with the central bank to take over United Bank.

The PIF has already made a handful of acquisitions: The fund acquired in August minority stakes in four EGX-listed companies for USD 1.3 bn through its newly established Egypt investment arm. The shares it took in e-Finance, Mopco, Abu Qir, and Alex Containers are the first of USD 10 bn pledged by the fund earlier this year as part of Saudi efforts to support Egypt’s external position, which has been rocked by soaring commodity prices as well as outflows from our debt market, and a weaker EGP. Abu Dhabi wealth fund ADQ led with similar moves, purchasing state-owned stakes in five companies for around USD 1.8 bn in April. There’s talk that the Qatari sovereign fund is poised to follow suit.

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