This morning brings news on the progress of potential stake sales in three state-owned companies that were last week named on the list of 32 state-owned companies the government plans to take to market over the next year.

UNITED BANK-

Two Saudi banks have United Bank on their radar: Riyadh-listed Saudi lenders Riyad Bank and shariah-compliant lender Al Rajhi Bank are looking to either fully acquire or buy into state-owned United Bank, Al Mal quotes Rep. Fakhri El Fiqi as having said. The banks would be looking to come on board as strategic investors, according to El Fiqi, who didn’t disclose how much of United Bank is up for sale. The CBE currently owns 99.9% of the bank. We were unable to reach representatives of Riyad Bank and Al Rajhi Bank for comment yesterday.

Riyad + Al Rajhi aren’t the first Saudi institutions to express interest: News has been circulating since May in local media that the Saudi sovereign wealth fund — the Public Investment Fund (PIF) — is in talks with the government to fully acquire the bank for USD 600 mn via its Egypt investment arm. The PIF is the largest shareholder in Riyad Bank, holding 22% of its shares. The CBE first floated plans to sell United to a strategic investor in 2017.

Advisors: Reports in local media have suggested that PIF has appointed EFG Hermes as financial advisors and US law firm Akin Gump as counsel. CI Capital is reportedly acting as United Bank’s advisor.

HELWAN FERTILIZERS COMPANY-

Helwan Fertilizers up for grabs to strategic investors? The government is reportedly looking to sell up to 20% of the state-owned Helwan Fertilizers Company to strategic Gulf investors, Al Mal reports, citing sources it says are in the know. PIF and Abu Dhabi’s wealth fund ADQ are eyeing a stake in the fertilizers company, the sources added, saying that listing the company on the EGX is unlikely, without disclosing further information.

Who’s selling? Most likely the state-owned Metallurgical Industries Holding, as well as the National Investment Bank (NIB), and the Agriculture Ministry, according to the sources. Helwan’s website lists 12 shareholders, the largest of which is the partially privatized, EGX-quoted fertilizers outfit Abu Qir, one of the nation’s largest fertilizer producers, with 17%. The state’s Social Ins. Fund is the next-largest shareholder with 15%.

Once again: Will strategic investors be happy with less-than-majority stakes and no management control? That remains one of the biggest questions hanging over the privatization program.

PACHIN-

Pachin bidders are evaluating their positions: Compass Capital, Eagle Chemicals and the Abu Dhabi-based National Paints Holding (NPH) are rethinking their options for EGX-listed Paint and Chemical Industries (Pachin) following its inclusion in the state privatization program, Al Mal reports, citing unnamed sources. The three companies had all launched takeover bids for the company but its inclusion in the program has raised the possibility that the government may look to dilute its position by calling for a capital increase via EGX or decide not to bring in strategics.

REFRESHER- The three companies have all made initial offers to purchase the company and are currently doing due diligence. Compass leads the pack with a EGP 30 per-share bid, while Eagle Chemicals offered EGP 29.5 and NPH EGP 29. Pachin is currently approximately 54% owned by state-owned companies and banks.

Advisors: Al Ahly Pharos is advising Pachin while Shalakany Law Office is counsel. Marei, Fayez, Dardiry & Partners is legal advisor to Compass Capital, which has not yet appointed a financial advisor.