Saudi Arabia’s PIF buys 23.08% stake in paper company Mepco to diversify portfolio – The National

Saudi Arabia’s PIF buys 23.08% stake in paper company Mepco to diversify portfolio – The National

Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has bought a 23.08 per cent stake in the Middle East Paper Company (Mepco) as the fund continues to expand its portfolio in key sectors of the kingdom's economy.The PIF acquired the stake in the Tadawul-listed Mepco by increasing capital and subscribing to new shares, it said on its website on Thursday.The total value of the investment was not disclosed.Mepco is an integrated paper manufacturer offering products for the packaging, construction and furniture sectors. It supplies the Middle East, Africa, Asia, the Americas and European markets.The deal, approved by regulators and Mepco’s shareholders, is expected to support the company’s expansion while strengthening its local supply chain for current and future projects, according to the wealth fund.“PIF’s investment in Mepco reflects the attractive opportunities for growth in promising sectors such as recycling, retail and building materials,” said Muhammad Aldawood, head of the industrials and mining sector in Mena investments at the wealth fund.The deal was completed following a preliminary agreement between the two entities in May, with Mepco announcing at the time that the PIF planned to subscribe to a significant minority in the company for 31.50 Saudi riyals ($8.40) per share.“PIF's