Philip Morris buys 14.7 percent stake in Egypt's Eastern Company

Ahram Online , Wednesday 22 May 2024

Philip Morris International (PMI) announced on Wednesday that it had acquired a 14.7 percent indirect minority stake in Egypt's largest cigarette manufacturer Eastern Company.

Eastern Company
Packs and a carton cigarettes made by cigarettes Egyptian tobacco manufacturer Eastern Company. Photo courtesy of Eastern Company website.


PMI, the world's top tobacco company by market value, did not disclose the value of the transaction.

However, as part of the deal, the companies will explore potential areas of strategic collaboration, including heated tobacco products, PMI said in a statement.

In December, the Egyptian Exchange (EGX) announced that investors acquired 73.46 million shares from the major Egyptian state-owned tobacco producer Eastern Company for EGP 2.05 billion ($66.55 million in the official exchange rate market).

In November, Emirati company Global Holding acquired a 30 percent stake in Eastern Company for EGP 16.4 billion ($530.86 million).

The remaining shareholders in the company are the state-owned 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), and free float (36 percent).

 Eastern Company was listed among 35 companies slated for partial or complete privatization by the government.

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