Oilex Multiple Oil Extraction Company has received an offer from a local investor to acquire its entire shareholding in exchange for assuming the company's debts of approximately EGP 11 billion.
Details of the proposed deal:
- Payment mechanism: The offer proposes settling part of the creditor banks' dues in cash, with the remaining balance rescheduled over several years.
- Current status: The transaction is still under review and evaluation by the parties involved, with a final agreement expected before the end of this year.
- Debt background: The offer follows earlier agreements between the banks and the company to reschedule debt and provide working capital financing, in an effort to weather economic pressures and volatility in exchange and interest rates.
About the Oilex industrial complex:
- Location and ownership: The plant is located in Sadat City and is owned by businessmen Sherif and Emad Ziada.
- Operating capacity: It is an integrated industrial complex built on 85,000 square metres, comprising seven plants specialising in the production of high-protein soybean meal and pure, degummed oils.
The company's history with bank financing:
- 2020 loan: In 2020 the company secured a large syndicated loan worth EGP 4.4 billion.
- Lending syndicate: Seven banks participated: the National Bank of Egypt, First Abu Dhabi Bank, Banque du Caire, Arab Bank, Suez Canal Bank, Al Baraka Bank Egypt and Emirates NBD.
- Use of proceeds: EGP 2.4 billion was allocated to building the industrial complex, with the aim of meeting domestic market needs, reducing imports and opening the door to exports, while EGP 2 billion was earmarked as working capital financing.
Source: Al Mal Forum
