São Paulo – Egypt’s Public Enterprise Sector Minister Hisham Tawfik announced the resumption of a program to sell stakes in state-owned companies according to information published this Friday (1st) by the local website Ahram Online.
According to the news, the Chemical Industries Holding Company announced the offering of 4.5% of the shares of its subsidiary Eastern Tobacco (picture above). The company produces several types of tobacco, cigars and filters.
The first stage of the program was announced in March 2018 aimed to strenghten Egyptian capital market and attract more liquidity to the Egyptian stock exchange. However, it was postponed in October 2018 due to the emerging markets crisis and global market volatility.
The program will also see shares of other companies, such as Alexandria Container and Cargo Handling Company, Abu Qir Fertilizers and Chemicals Industries Company, and Heliopolis Company For Housing and Development.
The government announced last year that it is working on a program to offer shares of dozens of its companies over the next five years in sectors such as oil, services, chemicals, shipping, marine services, and real estate to help support the state’s public finances.
The last public offering of state-owned companies was in 2005 when shares of Telecom Egypt, Alexandria Mineral Oils Company (AMOC), and Sidi Kerir Petrochemicals were sold. The country is implementing a series of reforms to boost its economy.
Translated by Guilherme Miranda
