Africa50 has another Egypt acquisition in its sights: Raya Holding’s board of directors has voted to preliminary approve an offer from African infrastructure investment platform Africa50 to acquire a 42.9% stake in Raya IT subsidiary Raya Data Center for USD 15 mn, according to an EGX statement (pdf).

Where will the money go? The investment will be used to finance the establishment of a new Tier III data center in Egypt, with construction set to begin in early 2025, Raya Holding CEO Ahmed Khalil told EnterpriseAM. The new center will “address the pressing need for reliable, scalable, and certified digital infrastructure in Egypt and Africa,” Khalil noted in a company press release (pdf).

Raya IT and others will also be putting their money where their mouth is for the USD 35 mn project: Wholly owned Raya Holding subsidiary Raya IT will be contributing an additional USD 10 mn for the data center. The company also plans to raise an additional USD 10 mn through undisclosed financing institutions, bringing the combined total investments to USD 35 mn, Khail told us.

Africa50? Africa50 is an infrastructure investment platform established by African governments and the African Development Bank that targets projects in the power, transport, IT, midstream gas sectors, and has recently broadened its remit to include fintech, health, and education-focused projects. The platform has already invested in Scatec’s 400-MW solar plant at the giant 1.5-GW Benban project.

Up next: The board has authorized the appointment of an independent financial advisor to assess Raya Data Center’s fair value. The board also greenlit efforts to study the offer, negotiate terms, and to start putting together final contracts.

Some Saudi IT acquisitions could be in the pipeline, too: Raya Holding is also planning to acquire two companies in Saudi Arabia operating in the IT and data center sectors by 3Q 2025 as part of its larger plan to grow its business in the Kingdom, Khalil said in comments to EnterpriseAM. Raya’s IT arm Raya IT has a three pronged approach to KSA, with the company focussing on expanding data centers and its cloud and digital solutions to banks, expanding its outsourcing operations, and expanding in the fintech sector by obtaining a license from the Saudi Central Bank to practice consumer finance through its fintech arm Aman Holding. Aman Holding is also set for a further EGP 1 bn in investment next year, as part of a wider EGP 2 bn investment plan for the year, the company’s CFO Hossam Hussein told Al Borsa..

There are also some expansion plans closer to home in the works: Raya’s manufacturing subsidiary Raya Electric will open a production line for products from De’ Longhi Group — owner of household name brands Kenwood and Braun, among others — next year, Khalil told us. Also in the pipeline is an agreement with Korean home appliance giant LG to locally manufacture 100k LG-branded residential air conditioners annually after three years with over 60% locally sourced components. The group also plans to apply for a digital bank license for its Aman arm by year-end from the Central Bank of Egypt, Khalil told Asharq Business.

But any upcoming IPOs from Raya are on hold — for now at least: “We have no plans to list any of our subsidiaries on the EGX under the current circumstances, and the matter is constantly under discussion to determine the appropriate time,” Khalil said at the event. Khalil’s comments reiterated the company’s position that it will wait for more favourable market conditions before offering up Raya IT, Raya for Trade and Distribution, and Aman Holding that have been earmarked for offerings for some time now.

Africa50 also plans to ramp up its digital infrastructure investments in Egypt, with over seven deals in the pipeline over the next two years, says Managing Director Raza Hasnani to Asharq Business, with investment tickets ranging from USD 20-40 mn.

Advisors: CI Capital acted as Raya Holding’s financial advisor, while Helmy, Hamza & Partners — Baker McKenzie’s Cairo office — acted as the company’s counsel. Herbert Smith Freehills LLP served as financial advisor for Africa50, while Matouk Bassiouny & Hennawy offered legal counsel on the agreement.

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