DUBAI May 26 Construction Products Holding Co
(CPC), a unit of private Saudi Arabian construction giant Saudi
Binladin Group, said on Monday it had bought Egyptian glass
manufacturer Sphinx Glass for $190 million.
The deal underlines growing interest among Gulf companies in
Egyptian assets as Egypt's economy begins to recover after three
years of turmoil following the toppling of Hosni Mubarak in
The Saudi Arabian, United Arab Emirates and Kuwaiti
governments are pouring billions of dollars of aid into Egypt
and encouraging firms to consider investing there.
Under CPC's ownership, Sphinx will meet growing demand for
float glass in local and export markets, setting up a second
production line to increase capacity, CPC's director of business
development Faysal Alaquil said in an emailed statement.
Sphinx, which expects a construction boom in Egypt as the
government seeks to ease social tensions by stepping up
construction of lower and middle-income housing, aims to
increase its revenues to $63.2 million this year from $55
million in 2013.
CPC bought most of the company from Egyptian investment firm
Citadel Capital, which said earlier this month that it
had received an offer of $112 million for its 73.3 percent stake
in Sphinx. The rest of Sphinx was owned by other investors, who
were also bought out by the Saudi firm.
The deal is part of a programme by Citadel, which has $9.5
billion of assets under management, to exit non-core assets and
focus on energy, transport, agrifoods, mining and cement over
the next five years.
Among other Gulf investment projects announced this year in
Egypt, Saudi Arabia's Aujan Coca-Cola Beverages Co plans to
spend $100 million building a fruit juice factory, while Dubai
retailer Majid Al Futtaim says it aims to invest about $2.3
billion over the next few years.
Egyptian officials have said they expect more than $4
billion of direct foreign investment in the country in the
current fiscal year to end-June, up by more than a third from
the previous fiscal year.
(Reporting by Mirna Sleiman; Editing by Andrew Torchia and