SaudConsult, one of the kingdom’s largest engineering firms, has joined hands with top investment funds – BPE Power and BPE Investments to acquire a 40 per cent 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.
Under the agreement, Saud Consult will acquire 20 per cent shares in the company, while BPE Power and BPE Investments will together acquire the remaining 20 per cent.
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.
Commenting on the acquisition, Omar Alshawaf, the 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,” remarked Dr Hamdy El Shaer, the chairman of PGESCo.
“They are instrumental to our continued growth,” he added.
Sherin Mosbeh, the 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.”