Egypt's NSPO acquires 20% stake in TAQA ARABIA for EGP 1.6 bln, expands portfolio in energy sector

Ahram Online , Tuesday 25 Jul 2023

The National Service Projects Organization (NSPO), an army entity, acquired a 20% stake in local energy company TAQA Arabia for EGP 1.63 billion ($52.75 million) Egypt's bourse announced on Tuesday.

TAQA Arabia fuel station. Company s website.
TAQA Arabia fuel station. Company s website.


The acquisition was carried out through a stock repurchase agreement, with NSPO obtaining 27.5 million shares at an average price of EGP 6. This purchase was made to settle a debt owed by TAQA's parent company, Qalaa Holdings.

Since its establishment in 1979, the NSPO has been involved in manufacturing military and civilian products, as well as providing contracting services. The organization has a diverse portfolio, with holdings in 22 entities operating across several sectors such as agriculture, petrochemicals, mining, food production, and energy.

The shares purchased by NSPO were previously owned by Silverstone Capital Investments, a subsidiary of Qalaa Holdings. According to the stock repurchase agreement, Qalaa has the right to repurchase the 27.5 million sold shares after four years from the date of the deal.

​As a result of the transaction, Silverstone's stake in TAQA decreased from 49.129 percent to 29.129 percent.

TAQA Arabia's new shareholders' structure is as follows: Egypt - Silverstone Capital Investments Ltd (29.129 percent); Egypt - National Service Projects Authority (20.00 percent); UAE - Financial Holdings International Ltd (17.78 percent); UAE - Rimco EGT Investment LLC (14.49 percent); Bahrain - Hana Holding Investment Co WLL (5.00 percent); Egypt - Citadel Capital for International Investments (0.60 percent).

After the announcement, TAQA Arabia's stock dropped by 3.8 percent and closed at EGP 10.54, marking its lowest level since the company's trading debut on the Egyptian Exchange (EGX).

TAQA Arabia, whose stock falls under the utility sector, debuted on the EGX on 9 July with an initial listing of 1.3 billion shares at a nominal value of EGP 0.5 per share. On its first day of trading, the company's stock surged by over 80,000 percent.

The NSPO's acquisition of a 20 percent stake in TAQA Arabia expands its portfolio in the energy sector as they own Wataniya petroleum.

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