Saudi engineering firm buys 40% stake in Egypt power firm

(MENAFN- Arab News) SaudConsult, a major engineering firm, has joined hands with top investment funds - BPE Power and BPE Investments to acquire a 40 percent stake in Egyptian firm Power Generation Engineering and Services Company (PGESCo). BPE Power and BPE Investments are investment vehicles managed by Cairo-based Beltone Private Equity which has over EGP 3 billion ($434.6 million) in assets under management, TradeArabia.com reported. Under the agreement, Saud Consult will acquire 20 percent shares in the company, while BPE Power and BPE Investments will together acquire the remaining 20 percent. PGESCo. is a leading Egyptian company providing engineering, procurement, project and site management services to electric power plants. It has completed over 19,000 MW of electric power plant capacity and has over 11,000 MW of ongoing projects in Egypt, Libya and Iraq. According to the report, Omar Alshawaf, executive vice chairman of SaudConsult, said: "This transaction marks our commitment to the power space in Egypt. It is a clear sign that Egypt remains an attractive investment destination and we remain committed to supporting the Egyptian economy." Also, the transaction will open new opportunities for PGESCo. to be involved in projects in Saudi Arabia and the rest of the GCC countries. PGESCo's regional presence and team of qualified engineers will also support the growth in new markets, said the company's top official. "Strategic acquisitions of this type and our recent entry into the Iraqi market underscore the importance of our commitment to developing the electric power infrastructure in Egypt and the rest of the Middle East," Hamdy El Shaer, chairman of PGESCo, was quoted as saying in the report. "They are instrumental to our continued growth," he added. Sherin Mosbeh, general manager of PGESCo, said: "I am pleased to see this new, strategic acquisition take shape in Egypt, a transaction that is fully aligned with our strategy of growth in the Middle East."