Social Impact Capital Acquires Additional Stake in CIRA Education
Deal News | Jan 20, 2025 | Zawya
Social Impact Capital Ltd. (SIC) has announced a mandatory takeover offer (MTO) to acquire an additional 37.5% stake in Cairo for Investment and Real Estate Development (CIRA Education), increasing its ownership to a significant majority. CIRA, which is Egypt's largest private sector education provider, is listed on the Egyptian Stock Exchange (EGX). This acquisition follows a capital increase in SIC facilitated by Afaq Al Elm Investments Company, a Saudi Egyptian Investment Company (SEIC) subsidiary. The investment by SEIC, launched in 2022 and fully owned by the Public Investment Fund (PIF), highlights their confidence in SIC's growth strategy and CIRA's potential to transform education across the region. Both SIC and CIRA's leadership anticipate that this strategic partnership will enhance educational opportunities in Egypt and potentially across the region, aiming to innovate and expand their educational services. The agreement marks a significant step in regional educational development, reinforcing CIRA's mission to become a leader in providing world-class education.
Sectors
- Education
- Private Equity
- Investment
Geography
- Egypt – The transaction involves CIRA Education, a major player in the Egyptian education sector, reflecting the country's growing investment landscape.
- Saudi Arabia – Involvement of the Saudi Egyptian Investment Company, a subsidiary of the Saudi sovereign wealth fund, underscores Saudi Arabia's investment interests in Egypt.
Industry
- Education – CIRA Education is the largest private sector education provider in Egypt, focusing on delivering integrated education services.
- Private Equity – Social Impact Capital Ltd.'s acquisition represents a strategic investment in the education sector, highlighting the role of private equity in fostering growth and transformation.
- Investment – The involvement of the Saudi Egyptian Investment Company underscores the significance of investment activities to support sectoral growth in Egypt.
Financials
- 51.2% initial stake, 37.5% additional stake – Social Impact Capital's initial and additional shareholdings in CIRA, highlighting the scale of their investment in the company.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Social Impact Capital Ltd. | Majority Shareholder and Acquirer | Company | A private equity firm focused on transformative investments, holding a significant stake in CIRA Education. |
| Cairo for Investment and Real Estate Development (CIRA Education) | Target Company | Company | Egypt's largest fully integrated education service provider, listed on the Egyptian Stock Exchange. |
| Afaq Al Elm Investments Company | Investor | Company | A subsidiary of the Saudi Egyptian Investment Company, participated in financing the acquisition through a capital increase. |
| Saudi Egyptian Investment Company (SEIC) | Investor | Company | A subsidiary of the Public Investment Fund focused on investing in promising sectors in Egypt. |
| Muteb Al Shathri | Acting CEO of SEIC | Person | Commented on the strategic importance of the investment by SEIC in CIRA Education. |
| Mohammed El Kalla | CEO of CIRA Education | Person | Shared insights on the significance of the investment for CIRA's growth and regional aspirations. |