Egypt sells Eastern Company’s factory no. 9 for EGP 1.58 bln

As declared in a statement by Eastern Company to the Egyptian Exchange, this deal was the average of the three valuations offered by valuation companies certified by the Central Bank of Egypt (CBE).

According to the statement, if the approval of the Industrial Development Authority is not issued or any of the parties does not abide by the contract terms, it will be terminated unless the parties agree otherwise.

In addition, the contract approved the UTC to 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 26 April 2026.

The statement also noted that there is licensing for entering into swap contracts.

Of note, Egypt launched its Initial Public Offering Programme (IPO) in February 2023, offering 35 state-owned companies to strategic investors by the end of June 2024. The government plans to earn $5 billion from this programme.

In parallel, the Egyptian cabinet released in February 2023 a list of 32 companies nominated for selling their stakes over the next year, adding another three companies: Eastern Company, Al Ezz Dekheila, and Telecom Egypt.

It is also worth noting that Egypt’s Ministry of Public Enterprise sold in November 2023 a 30 percent stake in Eastern Company to the UAE’s Global Investment Holding Company at a value of EGP 19.336 billion for 669 million shares of Eastern Company.

Moreover, Philip Morris announced in May 2024 that it acquired an indirect 14.7 percent minority stake in Eastern Company.