Military asset sales in the spotlight: The sales of military-owned firms Safi and Wataniya were spotlit in the latest iteration of the government’s state ownership policy out yesterday. The Wataniya transaction appears to have gotten extra traction after Taqa Arabia became the first company to publicly acknowledge interest in the firm, while the race for Safi remains, well, not very safi (pun intended).

ICYMI- The Sovereign Fund of Egypt has been working to sell at least 10% — and potentially as much as 100% — of filling station operator Wataniya and bottled water firm Safi under the privatization program. The government tapped CI Capital to quarterback the process, for which a roadshow kicked off in March.

TAQA EYES WATANIYA-

Taqa Arabia wants a stake in Wataniya: Qalaa Holdings’ Taqa Arabia has submitted a non-binding offer to buy an unspecified stake in fuel retailer Wataniya, the company said yesterday in an EGX disclosure (pdf). The government hopes to wrap up the sale between October and November.

Remember: The military’s National Service Projects Organization (NSPO), which owns 100% ofWataniya, last month acquired a 20% stake in Taqa in an EGP 1.6 bn transaction. The seller, Qalaa Holdings, has an option to repurchase the stake at a later date.

Taqa has competition: Taqa Arabia is among four firms that have been granted permission by the Madbouly government to conduct due diligence on Wataniya, according to the updated state ownership policy document leaked yesterday. The four firms were cleared for due diligence from among eight original bidders, according to the document.

So, who else is bidding? Abu Dhabi National Oil Company ( Adnoc ), the Emirates National Oil Company ( Enoc ), and Saudi firm Petromin were named by Asharq Business yesterday, which cited a senior government official. These are the same three companies Al Borsa claimed last month to be in the running for the company. None of the companies have commented publicly on the speculation.

The price tag? Bids for Wataniya have so far ranged between USD 250 mn and USD 280 mn, the government official reportedly told Asharq.

Taqa could pay in EGP: The state ownership document says that “in most cases” payment will be made in USD, though Taqa’s offer will not be paid fully in hard currency. Taqa told the EGX it is yet to decide on the means of financing the potential acquisition. Three banking sources told Asharq that the company is working to secure a loan of at least EGP 3 bn from a syndicate led by CIB.

Restructuring ? The government has spun off 174 of Wataniya’s 300 gas stations into a separate entity, according to the document. It’s not clear what this company is called, who owns it, or whether the assets will remain part of the transaction.

ICYMI- It’s been a big summer for Taqa: The company made its EGX debut last month in a direct offering to investors via the EGX.

TWO INVESTORS WANT SAFI-

Two unnamed investors are looking to acquire a stake in bottled drinks firm Safi, according to the document. The government expects to reach an agreement on the sale by December.

Has Safi been restructured? The NSPO-owned company has been restructured to spin off its factories and 75 distribution outlets from the rest of its business, the document says, without providing further details. As with Wataniya, it’s not clear which entity is being offered to investors. Local media had previously reported that potential investors were keen to buy the water business on a standalone basis without the firm’s olive oil, pickled olives, and salt subsidiaries.

REMEMBER- Agthia is out. ADQ-owned food company Agthia is reportedly no longer interested in acquiring the firm.

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