Saudi Investment Fund agrees to buy 25% of MOPCO

CAIRO - 9 August 2022: The Saudi Egyptian Investment Company, a subsidiary of the Saudi Public Investment Fund, agreed to buy 25 percent of the shares of the Misr Fertilizer Production Company (MOPCO) at a premium price of 25 percent over the stock price on the stock exchange, according to the Eastern Economy website which quoted a government official, who requested anonymity.

 

The contracts will be signed and the deal executed today or tomorrow, a source added to Al Sharq Business.

 

MOPCO's share ended trading on the Egyptian Stock Exchange (EGX), Monday, at LE 104.89, down 0.6 percent, bringing the company's market value to about LE 24 billion, while its capital is LE 2.291 billion, distributed among 229.117 million shares, with a nominal value of LE 10 per share.

 

The Saudi sovereign fund will acquire stakes owned by the Ministry of Finance, the National Investment Bank, Gasco and Misr Life Insurance in the company.

 

Last April, Abu Dhabi Holding acquired a 20 percent stake in MOPCO, for $266.5 million.

 

According to Al Sharq business, the Emirati company is currently in negotiations with the government to acquire an additional stake of about 10 to 15 percent in the Misr Fertilizer Production Company - MOPCO.

 

 

At the end of last March, Egypt and Saudi Arabia signed an agreement in this regard, and the Egyptian Cabinet indicated at the time that it was targeting investments of $10 billion in cooperation between Egypt's Sovereign Fund and the Saudi Public Investment Fund.

 

The net assets of the Public Investment Fund amount to $620 billion, according to the latest data of the Institute of Sovereign Funds, and it is ranked sixth in the world, while the Kingdom aims to reach 10 trillion riyals.

 

Mopco, owned by the Egyptian government, was established in 1998 and specializes in the production of fertilizers, ammonia and nitrogen. The company's profits jumped to LE 2.08 billion in the first quarter of 2022, compared to LE 792.7 million a year earlier, while revenues increased by 111.5 percent during the same period to LE 4.21 billion.

 

MOPCO is one of the largest exporters of urea in Egypt, producing about two million tons annually, and is exported to Europe, Latin America, Asia and Africa.