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Two informed sources, cited by Asharq Bloomberg, revealed that Egypt's Mostaqbal Masr Authority for Sustainable Development and the National Bank of Egypt have reached an agreement with 'Oilex', an Egyptian oil extraction company, to acquire a controlling stake in the firm in exchange for settling its outstanding debt obligations.
Oilex's total financial liabilities are estimated at approximately EGP 15 billion, distributed across seven creditor banks: the National Bank of Egypt, Abu Dhabi First Bank-Egypt, Bank of Cairo, Arab Bank, Suez Canal Bank, Al Baraka Bank-Egypt, and Emirates NBD.
Under the terms of the deal, the Mostaqbal Masr Authority will inject approximately EGP 5 billion toward the acquisition, while the National Bank of Egypt will contribute around EGP 4 billion. The agreement also includes the rescheduling of an additional EGP 5 billion portion of the company's debt, along with the write-off of accrued interest and penalties.
This move is part of the state's broader efforts to restructure Egypt's food and oils industry, ensure the continuity of strategically important companies in the domestic market, strengthen supply security, and contribute to greater price stability for vegetable oils in both the local and export markets.
Source: Egypt Times - Asharq Bloomberg