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Monday, 20 February 2023

Sovereign Fund of Egypt reportedly eyeing a minority stake in El Ezaby

Yesterday in M&A: A report in the local suggests that the Sovereign Fund of Egypt is interested in purchasing a minority stake in El Ezaby Pharmacy alongside a mystery investor while the shareholders of tourism developer Remco have agreed to sell a five-star hotel in Sharm El Sheikh to a company owned by the military.

IS THE SFE EYEING A PIECE OF EL EZABY?

The Sovereign Fund of Egypt’s (SFE) health and pharma sub-fund is eyeing a minority stake in pharma giant El Ezaby Pharmacy in partnership with an unnamed investment firm, Al Mal reports, citing unnamed sources it says are in the know. The size and value of the expected acquisition wasn’t disclosed.

The SFE’s mystery partner could well be B Investments: The sovereign fund and B Investments last month agreed to together channel more than EGP 2 bn into local healthcare and pharma businesses. As part of the agreement, the investment firm is making an undisclosed investment in the SFE sub-fund, which aims to raise an initial EGP 1.2 bn of capital. The sub-fund aims to invest in local pharma players to help them expand into under-served cities around the country and improve their digital offering.

Where’s the money going? The investment will be channeled as a capital increase and is expected to be used to pay some of the company’s debt, according to the news outlet.

MILITARY TO ACQUIRE 5-STAR HOTEL IN SHARM FROM REMCO-

Tolip will be the new owner of the Stella di Mare hotel: The shareholders of tourism developer Remco agreed on Thursday to sell 100% of the Stella di Mare Beach Hotel in Sharm El Sheikh to the military-owned Tolip Hotels and Resorts for EGP 700 mn, according to a bourse filing (pdf). The company submitted an initial offer for the hotel in October.

The buyer: Tolip is owned by the military’s National Service Projects Organization, and owns more than 20 hotels and resorts across the country.

The purchase: The five-star hotel is situated next to Naama Bay and has almost 300 rooms, 26 executive suites and a diving center.

What’s next: Remco will move forward with final procedures for the acquisition and signing of contracts, the statement reads.

Advisors: FinBi was the sell-side financial advisor on the transaction, according to the statement.

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