Carlyle Is Said to Target Egypt Deals as Reforms Revive Economy

CAIRO (Capital Markets in Africa) – Carlyle Group LP is targeting possible investments in Egypt as the U.S. buyout firm seeks to take advantage of an economic revival in Africa’s third-biggest economy, according to people familiar with the matter.

The company is in talks to buy a controlling stake in chocolate maker Covertina, the people said, asking not to be identified as the information is private. It’s also looking at other potential investments in the country, the people said, declining to give the company names.

Final decisions haven’t been made and Carlyle’s talks with the owners of Covertina could still fall apart, the people said. A representative for Carlyle declined to comment, while a spokesperson for Covertina couldn’t immediately be reached.

Investors are returning to Egypt after the country removed almost all restrictions on the Egyptian pound in November to help end a shortage of hard currency and the government clinched a $12 billion International Monetary Fund loan. Since then, inflows to the country’s stock market and government bonds have surged and at least six companies plan IPOs by the end of 2018, following two sales since January, according to data compiled by Bloomberg.

Sweetener Deal
Archer-Daniels-Midland Co.’s Swiss unit was in talks to buy a stake in Egyptian sweeteners-maker National Co. for Maize Products, the Egyptian firm said in March, a sign that the currency float made some local companies more attractive to foreign investors.

Carlyle’s $500 million Middle East and North Africa fund has investments in companies ranging from a franchise operator for Domino’s Pizza in Saudi Arabia to a Turkish lingerie maker. The company also has an African fund which it raised in 2011 to invest in Sub-Saharan Africa.

Carlyle earlier this month hired Idris Mohammed as managing director for its Sub-Saharan African funds team, according to a statement at the time. Mohammed, who joined the firm from Development Partners International LLP, will focus on West and North Africa investments.

Source: Bloomberg Business News