The Finance World Magazine| Edition: October 2023

Emirati Company Acquires 30% Stake in Egypt’s Eastern Co.
Global Investment Holding
Co. from the UAE has agreed
to purchase a 30% stake in
Eastern Co., Egypt’s primary
tobacco product manufacturer, for
$625M. This move aims to increase
private sector involvement in Egypt’s
economy. The sale will reduce the
state-owned Holding Company for
Chemical Industries’ stake in Eastern
to 20.95%, providing momentum to
Egypt’s privatisation efforts. As part
of the agreement, Global Investment
will contribute $150M for tobacco
procurement, though it’s unclear if this
is in addition to the $625M purchase
price. Egyptian Prime Minister Mostafa
Madbouly and ministers attended the
signing ceremony, highlighting the
government’s commitment to encouraging
private investment across sectors.
SABIC to Sell Steel
Unit Hadeed to PIF for
$3.3B
Saudi Basic Industries Corp (SAB-
IC) has reached an agreement
to sell its subsidiary, Saudi Iron
and Steel Company (Hadeed),
to the Public Investment Fund (PIF)
for an enterprise value of 12.5B riyals
($3.33B). The transaction is set to be
completed before the end of the first
quarter of 2024. Proceeds from the
sale will support SABIC’s growth in
the chemicals industry. The final sale
price will be disclosed closer to the
closing date. Hadeed has been a significant
player in the construction of
Saudi Arabia’s infrastructure projects,
aligning with the nation’s Vision 2030
economic transformation plan led by
PIF. SABIC anticipates a non-cash
loss of between 2 to 2.5B riyals in Q3
earnings due to the fair valuation of
Hadeed’s net assets.
STC Group to Become Top Shareholder in Telefonica
with 9.9% Stake
Saudi Arabia’s STC Group has
acquired a 9.9% stake in Telefonica
valued at 2.1B euros
($2.25B), positioning itself as
the top shareholder in the Spanish
telecom giant. This holding comprises
4.9% of Telefonica’s shares and an additional
5% economic exposure through
financial instruments. STC intends to
secure voting rights for the 5% held
through these instruments upon regulatory
approvals. STC’s CEO, Olayan
Alwetaid, views this investment as an
attractive opportunity to leverage their
strong balance sheet while maintaining
their dividend policy, emphasizing they
have no intention to gain “control or a
majority stake.” Telefonica acknowledged
the investment as “friendly.” The
position was built with the assistance
of Morgan Stanley, with Linklaters and
Allen & Overy acting as legal advisers.
UAE’s Multiply Group Acquires 55% Majority Stake
in Media 247
Multiply Group has successfully
acquired a 55%
majority stake in Media
247, a prominent outdoor
advertising company in the UAE, for
AED 225M. This strategic move, subject
to regulatory approvals, builds upon
Multiply Group’s intent announced in
April 2023. The acquisition price was
adjusted due to Media 247’s strong
financial performance, surpassing
revenue and profitability targets by
approximately 10% and 37%, respectively,
in the first half of 2023. Media 247’s
extensive portfolio of premium outdoor
hoardings and other offerings across
Dubai strengthens Multiply Group’s
position in the media and advertising
sector. The company’s resilience, particularly
during challenging times like
the pandemic, underscores the value
of this investment.
October 2023 www.thefinanceworld.com 53