{"id":619615,"date":"2024-05-07T00:00:00","date_gmt":"2024-05-07T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/05\/07\/this-evening-sic-is-raising-its-stake-in-cira-education-with-seic-backing\/"},"modified":"2024-05-07T00:00:00","modified_gmt":"2024-05-07T00:00:00","slug":"this-evening-sic-is-raising-its-stake-in-cira-education-with-seic-backing","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/05\/07\/this-evening-sic-is-raising-its-stake-in-cira-education-with-seic-backing\/","title":{"rendered":"THIS EVENING: SIC is raising its stake in CIRA Education with SEIC backing"},"content":{"rendered":"

Good afternoon, ladies and gents, and happy hump day.<\/strong> We\u2019re punctuating the halfway point of the week with big news for CIRA Education, the private sector education services provider: <\/p>\n

THE BIG STORY TODAY<\/strong><\/p>\n

CIRA Education majority owner to raise its stake with backing from PIF\u2019s <\/strong>SEIC: <\/strong>Saudi Egyptian Investment Company (SEIC) \u2014 an investment company wholly owned by Saudi\u2019s PIF \u2014 has signed a conditional agreement to subscribe to new shares in EGX-listed CIRA Education\u2019s 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)<\/a>.<\/p>\n

In detail: <\/strong>The agreement prices CIRA\u2019s 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\u2019s minority shareholders on the EGX.<\/p>\n

Regional expansion ahead:<\/strong>The SIC-SEIC consortium eyes transforming CIRA into \u201ca major regional player in the education sector\u201d and \u201cposition CIRA as a beacon of educational excellence in the MENA region.\u201d <\/p>\n

Market reax: <\/strong>CIRA Education\u2019s shares jumped 9.8% on EGX at today\u2019s close following the news.<\/p>\n

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Foreign investors are falling in love with Egypt again\u2026<\/strong> Foreign investors we speak with (debt, equity, and strategic alike) have a growing appetite for Egypt. They\u2019re 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\u2019s taking shape after the float of the EGP, and our competitive advantages are clear to many of them: We\u2019re a massive consumer opportunity and the regional export hub of tomorrow.<\/strong><\/p>\n

\u2026but here at home, our community is in a rut.<\/strong> The enthusiasm gap between domestic business leaders and global investors is stark. <\/p>\n

We\u2019d all do well to remember: It\u2019s a chicken-and-egg kind of thing. <\/strong>Foreign strategic investors will be reluctant to commit capital here until they see Egyptian businesses leading the way.<\/p>\n

The Enterprise Optimism Forum 2024 will do exactly what it says on the tin: <\/strong>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 \u201clong Egypt.\u201d<\/p>\n

We\u2019ll be talking with you about the agenda over the coming couple of weeks. <\/strong>It features speakers from Egypt and abroad who are future-proofing their businesses and angling to capture tomorrow\u2019s opportunities \u2014 and who aren\u2019t afraid to answer some tough questions. <\/p>\n

*** Interested in attending? <\/strong>Tap or click here<\/a><\/strong> to let us know.<\/strong> Seating is limited. <\/p>\n

<\/a> <\/p>\n

THE BIG STORY ABROAD<\/strong><\/p>\n

Israel\u2019s assault on Rafah continues to dominate the front pages of the foreign press this<\/strong> afternoon: <\/strong>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<\/a>. Israel\u2019s presence in Rafah disregards calls from Arab and European states not to attack the area for fear of mass civilian casualties. (Washington Post<\/a> | NYT<\/a> | Associated Press<\/a>)<\/p>\n

Egypt has condemned an operation in Rafah:<\/strong> The Foreign Ministry issued a statement<\/a> warning Israel against conducting a military operation in Rafah, which could cause \u201cgrave humanitarian risks\u201d and calling on Israel \u201cto exercise the utmost restraint and avoid further escalations at this extremely sensitive time in the ceasefire negotiation process.\u201d <\/p>\n

Ceasefire negotiations continue:<\/strong> As of Monday evening, Hamas has accepted<\/a> a ceasefire proposal from Egyptian and Qatari meditators but Israel has said it doesn\u2019t go far enough<\/a>. A delegation of mid-level Israeli officials is expected to land in Cairo this afternoon to assess Hamas\u2019 stance on the latest ceasefire offer, writes Reuters<\/a>, citing a senior Israeli official.<\/p>\n

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