Egypt’s Ministry of Public Enterprises has released details of the sale of a 30 percent stake in Eastern Co. to Global Investment Holdings Co (GIHC), reports Ahram Online.
The Emirati company will pay EGP19.336 billion ($625 million) for 6.689 billion shares of Eastern Co. The payment will be made in U.S. dollars in two transactions. The first payment will be made upon conclusion of the deal in the amount of EGP16.403 billion, and the second payment will be made in the amount of EGP2.932 billion on an agreed upon schedule.
GIHC has also pledged to provide $150 million to procure tobacco required for Eastern Co.’s manufacturing processes.
This deal is part of Egypt’s broader initial public offering program aimed at selling stakes in 35 state-owned companies to strategic investors by the end of June 2024.
In February, the government announced a list of 32 companies for privatization, subsequently adding Eastern Company, Telecom Egypt, and Ezz El-Dekheila. The privatization program is a component of Egypt’s commitment under its $3 billion loan program with the International Monetary Fund. The government hopes to attract $5 billion through privatization between October 2023 and June 2024.