SEIC and SIC Forge Partnership to Fuel Egypt's Education Sector Growth

SEIC and SIC Forge Partnership to Fuel Egypt's Education Sector Growth

By Staff Writer, 08 May 2024

Egypt’s Social Impact Capital (SIC) is poised for a substantial financial injection following its conditional agreement with the Saudi Egyptian Investment Co. (SEIC).

The agreement entails SEIC subscribing for new shares in SIC, the primary shareholder of CIRA Education, a company listed on the Egyptian Stock Exchange.

Through this deal, SIC aims to bolster its ownership in CIRA, potentially acquiring between 75 percent and 100 percent of its shares at a price of 14 Egyptian pounds ($0.29) per share.

The overarching goal is to privatize CIRA from the Egyptian exchange and position it as a key player in the regional education sector.

As a wholly-owned subsidiary of the Saudi Public Investment Fund, SEIC is poised to play a pivotal role in advancing CIRA’s market presence.

CIRA, known as one of Egypt's leading fully integrated education service providers in the private sector, stands to reap significant benefits from this strategic partnership.

However, the completion of this agreement hinges on several factors, including successful due diligence, regulatory approvals, and the finalization of definitive agreements.

Upon fulfilling these prerequisites, the SIC-SEIC consortium plans to extend a mandatory tender offer to CIRA’s remaining shareholders on the Egyptian stock exchange, adhering to applicable laws and regulations.

CIRA initially went public in 2018, boasting a market valuation of 1.2 billion Egyptian pounds.

During its IPO, selling shareholders, including SIC and other minority stakeholders, offered 207.26 million shares, constituting 37.8 percent of CIRA, to institutional and retail investors at a price of 6 Egyptian pounds per share.

SEIC’s involvement in Egyptian enterprises underscores its significant presence as a key investor in the country’s business landscape.

Source: Arab News

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