Port Said terminal operator to sell 20% stake on EGX: The Suez Canal Economic Zone’s (SCZone) board of directors signed off Thursday on selling a 20% stake in Port Said Container and Cargo Handling (PSCCHC) in an IPO on the EGX as part of the Madbouly government’s renewed privatization push, it said in a statement.

Current ownership structure: The SCZone currently holds a 39% stake in PSCCHC, while the Holding Company for Maritime Transport owns 40%, according to a company official we spoke with. The remaining shares are held by the Canal Shipping Agencies Company.

Remember: The company has been in line for an IPO since December when it listed its shares on the exchange. The company had six months with which to complete regulatory procedures under recent changes to securities regulations, a time period which elapsed last week.Companies are allowed to ask the Financial Regulatory Authority for a six-month extension if they haven’t completed the IPO procedures by the initial deadline.

Expect developments in the coming weeks: The company will begin the offering “very soon,” our source told us.

The company has also attracted interest from private investors: The Qatar Investment Authority submitted an offer earlier this year to acquire a majority stake in the terminal operator, along with shares in the Damietta Container & Cargo Handling Company (DCHC). Nothing has been heard from the talks since, and though details of the negotiations remain unclear, it was said that the Transport Ministry was reluctant to cede majority control of the companies.

AN ETHYDCO IPO?

Could Sidpec IPO Ethydco post-merger? That’s one of the options on the table, according to Al Mal. Sources familiar with the matter reportedly tell the newspaper that foreign investors have shown interest in acquiring 10% of the company and that this could be done via a public share sale on the EGX.

Remember: Sidi Kerir Petrochemicals (Sidpec) is in the process of acquiring the remaining shares in the Egyptian Ethylene and Derivatives Company (Ethydco) in an all-share merger. Sidpec currently owns 20% of the company, making it the second-largest shareholder after Egyptian Petrochemicals Holding Company (ECHEM), which holds 21%. The merger has been in the works since last year, and according to Al Mal’s sources should be completed within two months.

One option among many: An IPO is just one option under consideration, according to the people, who say that a final decision will be made after the acquisition wraps.

Ethydco has been earmarked for privatization: Ethydco was among the 32 companies named in the rebooted privatization program earlier this year.

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