Cleopatra, the main brand of Eastern Company. Company s website.
The transaction was executed on 669 million shares at EGP 24.52 per share. Eastern Company stock ended today’s session at a value of EGP 27.77.
The deal was originally sealed in September when Global Holding signed an agreement with Egypt’s state-owned Chemical Industries Holding Company (CIHC) to buy 30 percent of the stake in Eastern Company for $625 million, equivalent to EGP 19.3 billion.
Under the agreement, the Emirati company would also provide $150 million to procure the necessary tobacco materials for manufacturing.
After the sale, the state-owned shareholder, Chemical Industries Holding Company (CIHC), will retain a 20.9 percent stake in the Eastern Company.
The company's ownership structure currently stands as follows: UAE’s Global holding (30 percent), the Holding Company for Chemical Industries (20.9 percent), Allan Gray Equity Fund (7.2 percent), the shareholders union of the Eastern Tobacco Company (6 percent), with the remaining 36 percent held in free float.
The deal comes as part of Egypt’s IPO programme to sell stakes in 35 state-owned companies to strategic investors by the end of June 2024.
In February, the government announced a list of 32 companies, to which it later added Eastern Company, Telecom Egypt, and Ezz El-Dekheila.
The privatization programme is part of Egypt's commitments under its $ 3 billion loan programme with the IMF.
In a report published in August, the Egyptian government announced a plan to attract $5 billion from the offering of power plants and state-owned companies from October 2023 until the end of June 2024.
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