Offers roll in for the new hotels company: Investors have started submitting offers for the state’s newly-established hotels company, our friend Sovereign Fund of Egypt (SFE) CEO Ayman Soliman told Al Arabiya yesterday (watch, runtime: 4:05). The SFE is filtering the offers before sending them to Prime Minister Moustafa Madbouly and the relevant authorities to make a final choice, Soliman said.

The sale will be carried out through a capital increase rather than by existing shareholders selling out, Soliman said, confirming our expectations. A capital increase will help the company secure new funds to deploy as part of a growth and turnaround plan, while a sale of existing shares would benefit the selling parties, not the new company.

“We want to increase the efficiency of our hotels by pouring more investment into them and making them more profitable, to eventually have them listed on the EGX,” Soliman said.

REMEMBER- The government is looking to place a 20% stake in the hotels company with strategics, before offering another 5% on the bourse, according to earlier statements by Public Enterprises Minister Mahmoud Esmat. The company holds seven five-star propertiesnationwide — including the Cairo Marriott Hotel in Zamalek and Marriott Mena House next to the pyramids complex. .

Safi and Wataniya yet to receive offers

Military-owned bottled drinks firm Safi and fuel retailer Wataniya will “soon” start receiving offers from strategic investors, Soliman said. Shortlisted candidates will be invited to conduct due diligence prior to final negotiations, he said, adding that he expects the whole process to wrap up “within months.”

REMEMBER- The SFE is reportedly looking to sell at least 10% — and potentially up to 100% — of the two firms to strategics, depending on market appetite. CI Capital started marketing the two companies in a roadshow last month.

Four more companies to join SFE’s pre-IPO fund

The pre-IPO fund will welcome an additional four companies on top of the eight currently on board, Soliman said.

Who’s in? We still don’t know exactly which eight firms in the Madbouly government’s privatization program have so far been added to the fund, which was set up last year to ready state-owned companies for strategic stake sales ahead of public listings. Local media reports have named Egyptian Linear Alkyl Benzene (Elab), Banque du Caire, Misr Life Ins., and Salhia Investment and Development Company as part of the fund. Safi and Wataniya are not part of the fund.

No disputes with investors on valuations: Al Arabiya quotes Soliman as saying that there have been no disputes on how to value state assets following the EGP devaluation. Companies with USD revenue streams are valued in USD terms, he is quoted as saying. Reuters and Bloomberg in February reported that Saudi wealth fund PIF had paused negotiations for the acquisition of state-owned United Bank over a valuation dispute, with PIF wanting to value the lender in local-currency terms while the central bank was arguing for a USD-based valuation.

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