Eastern Sells Factory to PMI

Eastern Co. will sell the land, buildings and currently rented equipment of its Factory No. 9 to United Tobacco Co. (UTC), a subsidiary of Philip Morris International, for EGP1.58 billion ($32.66 million), reports Ahram Online.

According to an Eastern Co. statement to the Egyptian Exchange, the sales price was the average of three valuations offered by valuation companies.

As part of the deal, UTC will waive its right to recollect the remaining annual rent value of the factory that was paid in full according to the rent contract that ends on April 26, 2026.

Egypt is in the process of privatizing many state-owned companies. The government hopes to earn $5 billion from this program.

In November 2023, Egypt’s Ministry of Public Enterprise sold a 30 percent stake in Eastern Co. to the United Arab Emirates’ Global Investment Holding Co. for EGP19.34 billion.

In May 2024, PMI acquired an indirect 14.7 percent stake in Eastern Co.