Elab, Ethydco, and EDC stake sales ticked off the privatization checklist: Abu Dhabi’s sovereign wealth fund ADQ has inked contracts with the Sovereign Fund of Egypt (SFE) to finalize its acquisition of minority stakes in three state-owned oil and petrochemical companies, Al Borsa reported yesterday, citing sources it says are familiar with the matter.

The details: ADQ acquired a 35% stake in Egyptian Linear Alkyl Benzene (Elab), 30% of Egyptian Ethylene and Derivatives Company (Ethydco), and 25% of the Egyptian Drilling Company (EDC). The fund will pay USD 800 mn for the stakes, which will be transferred immediately, the media outlet quotes its sources as saying. To get the agreement over the line, the Madbouly government has reportedly agreed to provide certain guarantees on the transaction to ADQ for a defined period, according to an unconfirmed report.

The bigger picture: The sales were part of the USD 1.9 bn of privatization agreements announced in July. The government is accelerating its privatization plans in a bid to attract more foreign currency into the country and ease the 18-month currency crisis triggered by the war in Ukraine and rising US rates.

Looking ahead: The state wants to complete another USD 5 bn in sales between now and June 2024. It expects to sell stakes in the Gabal El Zeit and Zafarana wind farms, military companies Wataniya and Safi, a 4.8 GW combined-cycle power plant in Beni Suef, and a number of desalination plants over the next eight months.

Advisors: ADQ used Matouk Bassiouny & Hennawy as a legal advisor on the sale, while the SFE was represented by Baker McKenzie.

MORE ADQ INVESTMENTS TO COME?

Madbouly drums up ADQ interest in local investments: Prime Minister Moustafa Madbouly met with ADQ chief and UAE Investment Minister Mohamed Alsuwaidi yesterday, a cabinet statement said yesterday. Madbouly talked up investment incentives, golden licenses, and easing barriers to land ownership.

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