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Wednesday, 15 March 2023

CI Capital reportedly marketing at least 10% of Safi, Wataniya to strategics

CI Capital offering at least 10% of Safi, Wataniya to strategics? The Madbouly government has reportedly tapped CI Capital to market stakes of at least 10% in military-owned bottled drinks firm Safi and fuel retailer Wataniya to strategic investors, Asharq Business reports, citing an unnamed official it says has knowledge of the matter. Representatives of CI Capital declined to comment when we reached out yesterday.

The gov’t wants offers within a month: CI Capital will start promoting the offering to strategic investors today and hopes to wrap the roadshow within a month, according to Asharq.

Emirati interest: An unnamed UAE-based investor is “ready” to snap up a stake in Wataniya, a second source reportedly told the news outlet.

Expect stake sizes to change: One of the jobs of CI Capital will be to suss out appetite among potential investors. Strategic investors tend to look for sizable stakes so they can guide the management and growth of new acquisitions — something the government has reportedly been reluctant to agree to in the case of other potential privatization targets.

Background: The Sovereign Fund of Egypt (SFE) was earlier reported to have planned to sell a 20-30% stake in Safi and Wataniya to strategic investors before proceeding with public share sales when global market conditions have improved. The SFE has been restructuring the two firms ahead of the share sale after they were reportedly added to its pre-IPO fund in January. Safi and Wataniya are also on the list of the 32 state-owned companies the Madbouly government plans to offer to strategic investors and on the EGX by the end of 1Q 2024 under its privatization drive.


Misr Ins. Holding now belongs to the SFE: State-owned Misr Ins. Holding has been transferred in its entirety to the ownership of the Sovereign Fund of Egypt (SFE), according to a presidential decree published in the Official Gazette. The company was previously owned by the Public Enterprises Ministry.

Is more of Misr Ins. Holding in line for privatization? The move indicates that the government may be working to make more Misr Ins. Holding subsidiaries ready for stake sales as part of the Madbouly government’s privatization plan. Two of the company’s subsidiaries — Misr Life Ins. and Misr Ins. — were named among the government’s list of 32 companies up for stake sales to strategic investors, via the EGX, or a mix of both.

What Misr Ins. Holding owns: The company holds six subsidiaries other than Misr Ins. and Misr Life Ins., according to its website. They include two mutual guarantee or sharia-compliant ins. firms — Misr Takaful Ins. and Misr Takaful Life Ins — in partnership with the National Bank of Egypt; a real estate firm; a real estate and tourism investment company; an asset management subsidiary; and a financial services firm.

Performance indicators: The holding company’s bottom line grew 19% y-o-y to EGP 5.3 bn in FY 2021-2022 on a 50% increase in revenues.

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