Saudi sovereign wealth fund’s steel takeover: The Public Investment Fund (PIF) is on course to take over two of Saudi Arabia’s largest steel producers as it looks to create a giant “national champion,” it said in a statement yesterday. The wealth fund will take control of Sabic’s metals unit, Saudi Iron & Steel Company (Hadeed), and Al Rajhi Steel Industries after signing agreements for several transactions.

Here’s what’s happening:

  • The PIF will acquire 100% of Hadeed in a transaction giving it an enterprise value of SAR 12.5 bn (USD 3.3 bn). (Sabic stock exchange f ilin g, pdf)
  • Hadeed will acquire 100% of Al Rajhi Steel Industries in a share swap transaction. (PIF statement)
  • The transaction is expected to close by the end of 1Q 2024, which is when the final sale price will be announced.

ALSO FROM THE PIF- The PIF has sold its entire 10.9% stake in the country’s National Gas and Industrialization Company (GASCO) to Saudi investment management firm Jadwa for some SAR 491.2 mn (c. USD 130.4 mn). GIB Capital was the sell-side financial advisor. (GIB Capi tal stock exchan ge filing)

Prudential looks to Africa: British ins. Firm Prudential is pivoting to African markets after exiting the US and Europe to refocus on Asia. “We believe that over a period of time, Africa will provide us with [Asia’s] growth opportunity, as the markets mature, as the customers get a lot more aware of wanting and needing ins. as part of their protection, health coverage, as well as savings needs,” the company’s new CEO, Anil Wadhwani, told the Financial Times. The FTSE 100 insurer is already present in eight African markets including Ghana, Kenya, Uganda, and Zambia.

EGX30

18,726

-0.8% (YTD: +28.3%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

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20.25% lending

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DFM

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Brent crude

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Gold

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BTC

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THE CLOSING BELL-

The EGX30 fell 0.8% at yesterday’s close on turnover of EGP 1.62 bn (23% below the 90-day average). Regional investors were net buyers. The index is up 28.3% YTD.

In the green: Eastern Company (+5.9%), CIRA Education (+2.0%) and Alexandria Mineral Oils Company (+0.9%).

In the red: Elsewedy Electric (-3.7%), Alexandria Containers and Cargo Handling (-2.7%) and Abu Dhabi Islamic Bank (-2.7%).

Asian markets are mixed in quiet trading early in today’s session. US and Canadian traders are off today for the annual Labor Day holiday.

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