We now know who snapped up a significant minority stake in Taqa Arabia this week:The military’s National Service Projects Organization(NSPO) acquired a 20% stake in recently-listed Taqa Arabia for EGP 1.6 bn this week, according to a regulatory filing (pdf) by EFG Hermes Securities Brokerage yesterday. The EGX had said on Monday that 270.5 mn Taqa shares had been sold in a block trade, without disclosing the identity of the seller or the buyers.

Qalaa was the seller: Silverstone Capital Investments — an entity controlled by Taqa parent Qalaa Holdings — sold the shares to the NSPO, according to the disclosure. It sold the stake to make debt payments to one of its creditors.

Silverstone has now sold more than 50% of Taqa this month: Silverstone now owns 29% of the high-profile energy company, down from 80% earlier this month. It sold 386.2 mn shares to Financial Holdings Investments and Rimco EGT Investments in a block transaction on its market debut on 9 July, reducing its ownership to 49%.

The military got the shares at a discount: The NSPO purchased the shares at EGP 6.02 apiece, a 46% disc ount to the company’s closing share price on Thursday and 32% below the fair value estimate.

Qalaa can rewind: It has the right to repurchase the shares within four years of the transaction under a stock repurchase agreement.

Market reax: Taqa shares fell 3.8% to EGP 10.54 during trading yesterday.

The sale deepens the NSPO’s footprint in the energy sector (at least temporarily): The NSPO owns nationwide fuel retailer Wataniya. The company has been slated for privatization, and unconfirmed reports in the press have claimed that several Gulf investors are interested in acquiring a stake.

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