Egypt, Gulf Funds Agree To Defer Dividends For 3 Years
Date
9/13/2023 11:24:07 PM
(MENAFN- Daily News Egypt) The Egyptian government has reached an agreement with Gulf sovereign funds that invested in Egyptian companies to postpone the distribution of dividends for three years, according to sources familiar with the matter. The sources told Daily News Egypt that the Central bank of Egypt will guarantee the necessary dollar liquidity to transfer the investors' profits into foreign currency after the end of the period.
The agreement is part of the investment guarantee agreement signed by the government with Abu Dhabi Developmental Holding and the Saudi Public Investment Fund, which are among the most prominent investors in Egyptian companies. The government also pledged to protect the value of their investments and provide a guaranteed return of 8% annually for four years, after deducting taxes and exit fees.
The agreement covers the recent investments made by Abu Dhabi Holding in three government companies: National Drilling Company, Egyptian Linear Alkyl Benzene, and the Egyptian Ethylene and Derivatives Company, worth $800m. It also covers the investments made by the Saudi Egyptian Investment Company, affiliated with the Saudi Public Investment Fund, in four major Egyptian companies: e-finance, Abu Qir Fertilizers, Misr Fertilizers Production Company, and Alexandria Container and Cargo Handling, worth $1.3bn. These investments were announced in August 2023.
In addition, the agreement includes the investments made by Abu Dhabi Holding in five companies listed on the Egyptian Exchange, worth $1.85bn. These investments were announced in April 2023.
MENAFN13092023000153011029ID1107065036
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.