Egypt Edition 
UAE Edition 
Saudi Edition 
MENA <> India Corridors 
Logistics (MENA) 
Climate (MENA) 
Share Issue
Good afternoon, ladies and gents, and happy hump day. We’re punctuating the halfway point of the week with big news for CIRA Education, the private sector education services provider:
THE BIG STORY TODAY
CIRA Education majority owner to raise its stake with backing from PIF’s SEIC: Saudi Egyptian Investment Company (SEIC) — an investment company wholly owned by Saudi’s PIF — has signed a conditional agreement to subscribe to new shares in EGX-listed CIRA Education’s majority shareholder, Social Impact Capital (SIC). The agreement will see SIC using the financing from the subscription to raise its stake in CIRA Education to 75-100% and delist it from the stock exchange, the two companies said in a joint statement (pdf).
In detail: The agreement prices CIRA’s shares at EGP 14 each, implying a total value for the leading education firm at EGP 8.16 bn as per our calculations. The agreement, which is subject to due diligence and regulatory approvals, will be followed by a mandatory tender offer from the SIC-SEIC consortium to CIRA’s minority shareholders on the EGX.
Regional expansion ahead:The SIC-SEIC consortium eyes transforming CIRA into “a major regional player in the education sector” and “position CIRA as a beacon of educational excellence in the MENA region.”
Market reax: CIRA Education’s shares jumped 9.8% on EGX at today’s close following the news.
Foreign investors are falling in love with Egypt again… Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They’re buying into local debt, eyeing promising shares, and committing bns of USD to both new ventures here and the growth of their existing businesses. They like the Egypt story that’s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We’re a massive consumer opportunity and the regional export hub of tomorrow.
…but here at home, our community is in a rut. The enthusiasm gap between domestic business leaders and global investors is stark.
We’d all do well to remember: It’s a chicken-and-egg kind of thing. Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.
The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: Spark conversations about a future that we think is much brighter than so many in our community feel right now. Think of it as much-needed shock therapy combined with an early, actionable roadmap for those of us who are “long Egypt.”
We’ll be talking with you about the agenda over the coming couple of weeks. It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow’s opportunities — and who aren’t afraid to answer some tough questions.
*** Interested in attending? Tap or click here to let us know. Seating is limited.
THE BIG STORY ABROAD
Israel’s assault on Rafah continues to dominate the front pages of the foreign press this afternoon: Israeli forces have taken control of the Palestinian side of the Rafah border crossing in Gaza, ceasing the flow of all aid and human movement, the Palestinian border authority said in a statement, reports Bloomberg. Israel’s presence in Rafah disregards calls from Arab and European states not to attack the area for fear of mass civilian casualties. (Washington Post | NYT | Associated Press)
Egypt has condemned an operation in Rafah: The Foreign Ministry issued a statement warning Israel against conducting a military operation in Rafah, which could cause “grave humanitarian risks” and calling on Israel “to exercise the utmost restraint and avoid further escalations at this extremely sensitive time in the ceasefire negotiation process.”
Ceasefire negotiations continue: As of Monday evening, Hamas has accepted a ceasefire proposal from Egyptian and Qatari meditators but Israel has said it doesn’t go far enough. A delegation of mid-level Israeli officials is expected to land in Cairo this afternoon to assess Hamas’ stance on the latest ceasefire offer, writes Reuters, citing a senior Israeli official.
Get Enterprise daily
The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Fitch upgrades Egypt’s sovereign credit rating outlook to positive: due to a reduction in near-term external financing risks on the back of an influx of foreign capital from the Ras El Hekma agreement.
- Banque Misr’s MDI receives preliminary approval from CBE to launch digital bank: MDI plans to launch Onebank, Egypt’s first digital bank, in 4Q 2024 after finalizing the second phase of due diligence and acquiring the operating license.
☀️ TOMORROW’S WEATHER- It’s getting a bit warmer tomorrow, with the mercury set to peak at 32°C and drop to a low of 20°C, according to our favorite weather app.
