Egypt’s NSPO acquires $52-million stake in Pakinam Kafafi-led TAQA Arabia

Feyisayo Ajayi -

The National Service Projects Organization (NSPO), a subordinate to the Egyptian Ministry of Defense, has acquired a substantial 20-percent stake in Cairo-based energy distribution company TAQA Arabia, led by Egyptian executive Pakinam Kafafi.

The deal, executed via a block trade on the Egyptian Exchange, amounted to a staggering EGP1.62 billion ($52.4 million) and was brokered by Egyptian Financial Group Hermes Holding (EFG Hermes).

According to reports, NSPO purchased a total of 240.47 million shares at an average price of EGP 6.02 ($0.194) per share, making it one of the largest shareholders in TAQA Arabia. The investment underscores the Egyptian agency’s commitment to deepening its involvement in the country’s energy landscape.

TAQA Arabia, Egypt’s leading energy and utility provider, currently serves more than 1.7 million customers with their daily energy needs. The company specializes in the construction and operation of energy infrastructure nationwide, in addition to offering water treatment and desalination services to a diverse clientele.

The acquisition comes as no surprise, given TAQA Arabia’s remarkable growth under the leadership of Egyptian executive Pakinam Kafafi, one of North Africa’s leading businesswomen. Kafafi’s strategic leadership has led to successful acquisitions and mergers with several gas distribution firms, including BG, ENI, Edison, and AMEC.

Earlier this year, TAQA Arabia made headlines when it listed a substantial 1.35 billion shares on the EGX under the utility sector, with an issued capital of EGP 676.17 million ($21.85 million). With the recent investment by NSPO, the energy distribution company’s market capitalization now stands at an impressive EGP 13.1 billion ($423.9 million).

At the time of writing this report, TAQA Arabia’s shares on the Egyptian Exchange were traded at EGP 9.69 ($0.313), reflecting investors’ growing confidence and interest in the company’s potential for further expansion.

The acquisition of the stake by NSPO in TAQA Arabia is expected to have far-reaching implications on Egypt’s energy sector and potentially pave the way for more significant collaborations and advancements in the country’s energy distribution landscape.