Two Emirati companies and a Saudi company are competing to win an investment contract in the first Egyptian company owned by the Egyptian army to be presented to investors, according to the agency.Bloomberg“.
The agency quoted people familiar with the matter as saying that the state energy company in Dubai and the Saudi company, Petromin, entered into a competition with the Abu Dhabi National Oil Company, to invest in the “National Petroleum Company,” an Egyptian fuel distribution company that has more than 200 filling stations and is run by the army. .
Bloomberg said that the company that will win the competition will jointly with the Egyptian sovereign wealth fund obtain full joint ownership of the “National Petroleum” company.
It is expected that bids will be completed before the end of this year, as a local Egyptian company, Taqa Al Arabia, is also competing in the race to acquire the army-owned company.
The people familiar with the matter, who requested anonymity because the negotiations are confidential, said that procedures for examining the financial records of Wataniya Petroleum are continuing.
Bloomberg confirmed that the CEO of Egypt’s Sovereign Fund, Ayman Soliman, declined to comment, while spokespersons for Saudi Petromin and Abu Dhabi National Oil Company were not immediately available for comment.
She added that the expected deal will be the first of its kind in plans to grant full ownership of up to 10 companies owned by the National Service Products Authority in Egypt, which is affiliated with the Ministry of Defense, noting that this matter may represent a historic opening for part of the economy in the country.
The Egyptian army owns dozens of companies in several sectors, most notably the consumer goods sector, the industrial sector and the service sector.
Egyptian President Abdel Fattah al-Sisi said earlier that the army should be allowed to list its companies’ shares on the stock exchange, like state companies that are due to be privatized.
The Egyptian government has been talking for years about selling state-owned companies that are not owned by the army, and almost two years ago announced that it would offer minority stakes in 23 companies as part of a plan to raise up to 80 billion Egyptian pounds.
Government officials say the program has been repeatedly delayed, partly due to weak markets and legal obstacles.