CIRA Acquires 37.5% Additional Stake for Regional Growth
Deal News | Jan 20, 2025 | Zawya
Social Impact Capital, already holding a majority stake of 51.20% in Cairo for Investment and Real Estate Development (CIRA Education), is acquiring an additional 37.5% stake in the company through a mandatory takeover offer (MTO). This move aims to establish CIRA as a regional leader in education by promoting access to top-tier learning and fostering transformative initiatives across all educational stages. The additional shares acquisition follows an agreement involving Afaq Al Elm Investments Company, a subsidiary of the Saudi Egyptian Investment Company (SEIC), which itself is fully owned by the Saudi Public Investment Fund. The capital for this acquisition will be raised via a capital increase in Afaq Al Elm. This strategic transaction is championed by CIRA's CEO, Mohammed El-Kalla, who emphasizes the partnership's potential to innovate and expand the educational landscape in the region. With strong backing from SEIC, this expansion is part of a broader strategy to invest in sectors critical to Egypt's economic development. The announcement ties into CIRA's earlier initiatives, such as the launch of CIRA Care, aimed at revolutionizing the care economy in the Middle East.
Sectors
- Education
- Investment
- Real Estate Development
Geography
- Egypt – CIRA is the largest fully integrated education service provider in the Egyptian private sector, and both Social Impact Capital and SEIC are focused on investing in this region.
- Saudi Arabia – Afaq Al Elm Investments Company is a subsidiary of the Saudi Egyptian Investment Company, which is backed by the Saudi Public Investment Fund.
Industry
- Education – The article discusses investments and strategic moves within the education sector, focusing on CIRA's expansion and transformative initiatives.
- Investment – Social Impact Capital's acquisition of additional equity in CIRA, along with SEIC's financial involvement, highlights significant investment activities.
- Real Estate Development – CIRA's full name includes 'Real Estate Development', indicating an involvement in opportunities linked to educational infrastructure.
Financials
- 37.5% – An additional equity stake being acquired by Social Impact Capital in CIRA.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Cairo for Investment and Real Estate Development (CIRA Education) | Target Company | Company | The largest fully integrated education service provider in the Egyptian private sector. |
| Social Impact Capital | Majority Shareholder/Investor | Company | Majority shareholder of CIRA, acquiring an additional 37.5% stake for expansion. |
| Afaq Al Elm Investments Company | Financial Backer | Company | A subsidiary of the Saudi Egyptian Investment Company, involved in financing the MTO. |
| Saudi Egyptian Investment Company (SEIC) | Investment Partner | Company | A fully owned subsidiary of the Saudi Public Investment Fund, backing investments in CIRA. |
| Mohammed El-Kalla | CEO of CIRA | Person | CEO of CIRA Education, advocating for regional educational expansion. |
| Muteb Al Shathri | Acting CEO of SEIC | Person | Announced SEIC's strategic cooperation to support CIRA's growth. |