RIYADH: Saudi Arabia’s sovereign wealth fund has increased its ownership stake in Middle East Paper Co. to 23.08 percent by undertaking a capital increase and subscribing to new shares.
According to a press release by the Public Investment Fund (PIF), this agreement is set to empower MEPCO, enabling the company to amplify its production capacity, refine operational efficiency, and actively contribute to environmental sustainability.
This step taken by PIF aligns with its sustainability objectives, showcasing dedication to encouraging environmentally conscious practices within the acquired company.
Muhammad Al-Dawood, the head of the Industrials and Mining Sector in MENA Investments at the fund, commented, “PIF’s investment in MEPCO reflects the appealing growth prospects within promising sectors such as recycling, retail, and building materials.”
He continued, “This investment allows MEPCO to extend its sustainable production initiatives, focusing on high-value products and expanding its export endeavors.”
The Jeddah-based company is a prominent manufacturer specializing in paper product production and recycling within the Middle East and North Africa region.
The investment is poised to bolster MEPCO’s expansion strategy, particularly in the realm of specialized building materials like gypsum board.
The press statement additionally highlighted PIF’s diversified portfolio of investments in the construction services sector. These investments aim to support sustainable growth within the Saudi economy, attract both local and foreign investments, expand operational capabilities, and facilitate technology transfer.
Furthermore, the investment in MEPCO is expected to fortify Saudi Arabia’s private sector, elevate local content, stimulate exports of high-value products ready for market, and elevate overall quality and competitiveness.
“PIF’s investment further fortifies the execution of our expansion strategy and captures considerable growth potential, both domestically and regionally,” stated Sami Al-Safran, CEO of MEPCO.
Al-Safran added, “This will pave the way for new opportunities as MEPCO pursues its path to becoming a national frontrunner in our industry. Our company is committed to sustainable growth and a brighter future, driven by our distinctive strategy that integrates paper products and waste management.”
The transaction received endorsements from relevant authorities and MEPCO’s shareholders, who approved it at an extraordinary general meeting.