Factbox: Egypt sell stakes in state-owned companies worth $1.9 bln

Ahram Online , Tuesday 11 Jul 2023

Egypt has signed contracts with the private sector to sell state-owned entities worth $1.9 billion under the Initial Public Offering (IPO) programme which the country adopted earlier this year.

State-owned Cairo Marriott Hotel   Omar Khayyam Casino.
State-owned Cairo Marriott Hotel Omar Khayyam Casino.


The privatized assets include steel and petrochemical companies, along with state-owned hotels and green energy plants. 

Here is a breakdown of the key deals signed between the government and the private sector:


Petrochemicals and drilling sector

The Egyptian government has offered stakes ranging from 25 percent to 30 percent three companies – Ethydco, Elab, and National Drilling – for $800 million to Abu Dhabi Fund for Development.

The Egyptian Ethylene and Derivatives Company (ETHYDCO) is an Egyptian joint stock company established in 2011 with a total investment cost of $1.9 billion. 

The Egyptian Linear Alkyl Benzene Co. (ELAB) is an Egyptian Shareholding Company established in 2003 to produce Linear Alkyl Benzene licensed by UOP Technology for a capacity of 100,000 tons per year.

Established in 1981, National Drilling specializes in drilling new wells and management of existing ones, exploring oil onshore and offshore, storage and maintenance of drilling equipment. National Drilling Company provides its engineering experience and expertise to train the proper management of drilling equipment.


Al Ezz Dekheila Steel

Egypt sold a 31 percent stake in Al Ezz Dekheila Steel for $241 million. 

Al Ezz Dekheila Steel, a subsidiary of Ezz Steel, is the largest steel manufacturing facility in Egypt, with a total capacity of 3.2 million tons of finished steel products per annum. It is located in Dekheila, west of Alexandria, Egypt's second-biggest city and its main port.

The company has a total value of EGP 1.95 billion, calculated from its 19.5 million listed shares with a nominal value of EGP 100 per share.

In preparation for the transaction, the company's board of directors decided on Tuesday to delist from the Egyptian Exchange. 



Icon Investments, a subsidiary of Talaat Mostafa Holding, has partnered with a foreign partner to increase the capital of the state-owned Egyptian General Company For Tourism and Hotels (EGOTH) by around 37 percent, or $700 million. 

EGOTH is a subsidiary of The Holding Company for Tourism, Hotels and Cinema (HOTAC), one of the region’s largest hotel-owning companies. EGOTH owns 14 hotels and one cruise. Their portofolio includes five historic hotels, including Marriott and Mena House in Giza, Sofitel Winter Palace in Luxor, Legend Old Cataract in Aswan, Hotel Palestine in Alexandria. 

They have renovated 2,902 hotel rooms across Egypt in five years and plan to develop around 1,227 existing rooms and establish 320 new rooms in the next three years.


First wave deals

The government has sold stakes in two state-owned companies. The UAE's National Paints company acquired a majority stake (81 percent) in state-owned Paint and Chemicals Industries (PACHIN) for EGP 770.4 million (about $25 million). Also, a 9.5 percent stake was sold in Telecom Egypt for EGP 3.7 billion ($122.2 million).

Prime Minister Mostafa Madbouly announced that other deals worth $1 billion would be announced soon and Planning Minister Hala El Said revealed details about future deals.


In the pipeline
  • National Investment Bank is preparing the privatization of eight state-owned entities.

  • The government has received non-binding bids for Gabal El Zeit Wind Farm and the winning bid will be announced in October. The project will secure over $300 million.

  • Egypt received six bids for Wataniya company and the company and the winning bid will be announced in October or November.

  • 21 water desalination plants with a total capacity of 3.3 million cubic meters per day are prepared for offering until 2025 for a value of $3 billion.

  • Until now, 99 investors have submitted bids for the plants from 30 countries and 17 consortiums were qualified. Four plants are to be offered in 2023.

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