Emirati company buys 30% stake in Egypt tobacco firm Eastern Co. | Reuters
UAE's Global Investment Holding Co. has agreed to buy a 30% stake in Eastern Co. (EAST.CA), Egypt's main tobacco products maker, for $625 million, a measure that will widen private participation in the economy, Egypt's cabinet said on Sunday.
Last month, Egypt state-owned Holding Company for Chemical Industries, which held 50.95% of Eastern's shares, said in a stock market disclosure it had received offers from foreign investors to buy up to half of its shares.
The sale will reduce Chemical Industries' stake to 20.95%, giving impetus to Egypt's floundering privatisation programme.
Global Investment will provide $150 million to buy the tobacco necessary for production as part of the agreement. It was not clear from the statement if this was an additional amount or was included in the $625 million purchase price.
Egyptian Prime Minister Mostafa Madbouly and the finance and public enterprise ministers attended a signing ceremony for the purchase.
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