Egypt Nabs $1.9 Billion from State Asset Sales in Race for Cash - Bloomberg

Egypt Nabs $1.9 Billion from State Asset Sales in Race for Cash - Bloomberg

Egypt signed deals worth $1.9 billion with private sector firms and a United Arab Emirates wealth fund as part of its plan to sell state assets, officials said on Tuesday, looking to send a clear signal of progress in efforts to revive an economy crippled by a foreign-currency crunch.

The divestments mark the most significant step in making good on broad plan announced in February to list new or additional stakes on the Egyptian stock exchange — or offer them to strategic investors. The program is a key part of the efforts to replenish coffers that suffered from the economic fallout of Russia’s invasion of Ukraine.

Among the deals was a $700 million investment by a unit of real estate developer Talaat Moustafa in a holding company that grouped several state-run hotels. In addition, the government sold $800 million in minority stakes in Egyptian Ethylene and Derivatives Company, National Drilling and Egyptian Linear Alkyl Benzene to ADQ, an Abu Dhabi fund, Planning Minister Hala Elsaeed said in a press conference.

In addition, the state sold a 31% stake in Ezz Aldekhela Steel for around $230 million, in a move that would have the company de-listed from the Egyptian stock exchange. Those deals were binding.