Saudi Arabia’s sovereign wealth fund Public Investment Fund (PIF) has acquired a 23.08% stake in Middle East Paper Company (MEPCO).
The wealth fund has completed this acquisition through a capital increase and a new share subscription.
The PIF first confirmed its plans to acquire a ‘significant minority stake’ in MEPCO in May last year, after agreeing to buy newly issued shares in MEPCO.
The completion of this deal was pending certain necessary approvals, which have now been obtained from the relevant authorities and MEPCO's shareholders during an extraordinary general meeting.
MEPCO specialises in manufacturing and recycling paper-based products across the Middle East and North Africa (MENA) region.
The company, which is claimed to be one of the major producers of paper and packaging in the region, can produce up to half a million tonnes of paperboard.
PIF MENA Investments Industrials and Mining Sector head Muhammad Aldawood said: “This investment enables MEPCO to expand its sustainable production activities while focusing on high value-added products and growing its export activities.”
The PIF said that its investment in MEPCO is further expected to enhance the private sector, increase local content, and improve the quality and competitiveness of exports.
MEPCO CEO Sami Al Safran said: “PIF's investment further enables the implementation of our expansion strategy and captures significant growth potential, both locally and regionally.
