Arab Finance: The National Service Projects Organization (NSPO) signed an agreement with Taqa Arabia to transfer ownership of a stake in 172 fuel stations operating under the Wataniya Petroleum Company's brand and place their management and operation under a newly established company, Quick Fuel for Trading and Distribution of Petroleum Products, as per a statement.
Witnessed by Prime Minister Mostafa Madbouly, the agreement was signed by Magdy Anwar on behalf of NSPO, and by Khaled Abu Bakr and Pakinam Kafafi on behalf of Taqa Arabia at the government's headquarters in the New Capital.
Under the agreement, the fuel stations, currently owned by the NSPO and operating under the Wataniya brand, will be transferred to Quick Fuel following a restructuring and reorganization process aimed at preparing the assets for a new phase of operation and expansion in partnership with the private sector.
According to Anwar, Taqa Arabia will acquire a 10% stake in Quick Fuel and enter into a management and operation agreement covering the company. Under the arrangement, Taqa Arabia will oversee operations, implement development plans, improve operational efficiency, enhance service quality, and support the geographic expansion of the fuel station network across Egypt.
The agreement also grants Taqa Arabia the option to acquire an additional 15% stake in Quick Fuel following the company's planned listing on the Egyptian Exchange (EGX). The move is intended to support the state's objective of broadening ownership and attracting additional investment to the Egyptian capital market.
Madbouly said the deal forms part of Egypt's state asset offering program and aligns with the State Ownership Policy Document, which seeks to expand private-sector participation in the economy.
Meanwhile, Minister of Investment and Foreign Trade and Chairman of the Sovereign Fund of Egypt (TSFE) Mohamed Farid Saleh explained that the transaction supports the government's efforts to enhance private-sector participation in economic activity while improving governance standards and the financial and operational performance of state-owned assets.
He added that the deal is consistent with the implementation of the State Ownership Policy and the government's broader offerings program, which aims to expand ownership in state-owned companies and promote private sector-led growth.
For his part, Abu Bakr described the agreement as a new phase in cooperation between the state and the private sector, noting that it goes beyond management and operation to include ownership transfer and corporate restructuring in preparation for a future stock market listing.
Additionally, Kafafi said the transaction represents a significant step in Taqa Arabia's strategy to expand its presence in Egypt's petroleum products distribution and marketing sector. She added that managing and operating the 172 Wataniya fuel stations under the Quick Fuel umbrella will enable the company to broaden its service offerings and leverage its sector expertise to improve performance and support future growth.
The transaction was supported by the advisory role of TSFE, which oversaw the offering process and execution of the deal. The advisory team for NSPO included CI Capital as exclusive financial advisor, Adsero–Ragy Soliman & Partners as legal advisor, and Grant Thornton Egypt as accounting and tax advisor. Zulficar & Partners Law Firm served as legal advisor to Taqa Arabia.
