The Egypt unit of the Public Investment Fund is looking to acquire a controlling stake in Egypt’s leading private-sector education company with a view to turning it into its regional education platform. The transaction is the first investment by the Saudi Egyptian Investment Company (SEIC) since Egypt floated its currency earlier this spring.

What’s the transaction? SEIC, a wholly-owned PIF subsidiary, will buy into Social Impact Capital (SIC), the vehicle through which the founding El Kalla family holds a controlling take in EGX-listed CIRA Education, the nation’s leading private-sector education company. SIC will use the cash injection to launch a mandatory tender offer to buy CIRA shares at a price of EGP 14 each, the two companies said in a joint statement (pdf).

CIRA shares closed up 9.8% yesterday at EGP 14.00, giving the company a market cap of a bit under EGP 8.2 bn, by our math.

EnterpriseAM Egypt has the rundown on the transaction, a test case for how Egyptian officials will move on critical regulatory and other approvals on a high-profile transaction.

BACKGROUND- The PIF has already deployed substantial capital in Egypt. The fund — which ranked as the world’s highest-spending sovereign wealth fund in 2023 — invested over USD 1.3 bn via SEIC to acquire stakes in state-held EGX-listed companies in 2022. Its holdings here include a 25% stake in Mopco, a 19.82% stake in Abu Qir Fertilizers, a 27% stake in E-finance, and a 20% stake in Alexandria Container and Cargo Handling.

ADVISORS- Rothschild & Co is advising PIF, with Allen & Overy and our friends at Matouk Bassiouny doing legal duties. Our friends at EFG Hermes are advising El Kalla family, while White & Case is legal counsel, we’re told.

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