The holding company for chemical industries intends to sell part of its stake in eastern smoke company, as it has received multiple offers from foreign investors seeking to acquire a stake of up to 30% of its total stake
It is noteworthy that the holding company owns about 50.95% of the shares of the eastern smoke company, and this step reflects the holding company's strategy to take advantage of the opportunities offered by the global markets and strengthen its own capital, and this sale is likely to contribute to diversifying investment sources and increasing orientation towards global markets, by taking advantage of the expertise and resources of foreign investors, and with Therefore, the company is faced with the potential challenges of this decision, including the possible impact on the management and economic balance of the company.
The company should make sure to choose an investment partner with experience and strategic vision that enhances the company's performance and achieve diversity and sustainability in the market, and it remains to sell a stake in Eastern smoke company A strategic decision that requires a careful assessment of risks and opportunities, and sound guidance that contributes to the interests of the company and its investors alike.
The eastern company said that the holding company for chemical industries, the main shareholder, has received several offers from foreign investors to purchase a share not exceeding 30% of its total share, amounting to about 50.95% of the shares of the eastern company.
This came after the management of the eastern company contacted the main shareholder, the holding company for chemical industries about the news regarding the sale of part of its shares to a foreign investor, according to a statement of the eastern company sent to the stock exchange on Tuesday.
The holding company said that it has received several offers from foreign investors to purchase a share not exceeding 30% of its total share, in light of the implementation of the state directives on the program of offering state-owned companies on the Egyptian Stock Exchange in order to expand the ownership base, activate trading on the stock exchange, enhance investment opportunities and benefit from the proceeds of the offering of shares in the development, modernization and restructuring processes.
The company pointed out that these offers are currently being studied and negotiated with their providers to choose the best one, knowing that the implementation of the transaction is linked to the screening of ignorance.
Informed sources revealed a new strategic move by the eastern smoke company, where negotiations are currently underway with a strategic investor on the sale of an additional share to a strategic investor.
The sources explained in private statements to the people of Egypt that the company is in intensive talks with a strategic investor to transfer ownership of part of its shares in the company, explaining that the sale does not include a share offering on the Egyptian Stock Exchange, but it represents an important transfer of ownership that may cast a shadow on the economic scene.
The sources confirmed that the company and the strategic investor are conducting a thorough and comprehensive examination of the financial and administrative conditions of the company, in order to assess all aspects of the company and ensure that the deal will be solid and profitable for both sides, pointing out that this action is in response to reports of a dispute between the government and the strategic investor regarding the details of the deal.
The sources pointed out that negotiations are taking place between United tobacco and the Egyptian government, including the holding company and the Ministry of Finance, adding that the size of the stake is a major challenge for the government currently, as there are fears of losing the majority stake in the company.
The move is expected to boost confidence in the Egyptian economy and attract more strategic investments to the country.
This strategic step reflects the importance of enhancing cooperation between the private sector and the government, as this alliance can be useful to strengthen the company's positions and improve its performance in the market.it is important to follow the developments of this transaction and the possible effects on the company and the Egyptian market in general.
Engineer Ibrahim Imbabi, head of the general division of smoke and cigarettes at the Federation of industries, called on the government and officials for transparency in the sale of a share of the eastern smoke company, saying ‘the government should respect the mentality of the people’, pointing out that there is a need for clarification by the government after the recent frequent news about the sale of a share of the company.
United tobacco company, a subsidiary of Philip Morris, is negotiating with the Egyptian government to purchase a minority stake in Eastern smoke company Eastern company, which holds a market share of up to 75% of the cigarette market in Egypt, with an estimated market value of 39 billion pounds (1.3 billion dollars).
In 2019, the government had sold up to 4.5% of its shares in al Sharqiya Al Dukhan worth 180 million dollars at that time, and recently managed to raise 1.9 billion dollars, and aspires to raise an additional billion dollars from the sale of other assets in the near future.
Philip Morris paid about 450 million dollars to obtain the new license to produce traditional and electronic cigarettes in Egypt during June 2022, in a bid from which all foreign companies operating in the country withdrew because they objected to the terms of the license.
It should be noted that the ownership of alsharqiya Al Dukhan is divided between the holding company for chemical industries affiliated to the government with 51%, the Alan Gray Investment Fund with 7.2%, and the Union of employees shareholders with 5.2%, while the remaining shares are available for trading on the Egyptian Stock Exchange.
Source : ahlmasrnews
