Eastern Company building.
Under the deal, the Emirati company will pay EGP 19.336 billion ($625 million) for 669 million shares of the tobacco company, the equivalent of EGP 28.90 per share.
The payment, which will be made in US dollars, will be in two tranches: the first worth EGP 16.403 billion upon conclusion of the deal and the second worth EGP 2.932 billion according to an agreed-upon schedule.
Additionally, Global Holding has pledged to provide $150 million to procure tobacco required for Eastern Company's manufacturing processes.
Eastern Company's stock closed at EGP 27.77 per share in Thursday's session, an increase of 5.91 percent. This surge in value has propelled the company's market worth to over EGP 47.9 billion ($1.56 billion).
This acquisition aligns with Egypt's ongoing efforts to invigorate the stock exchange and generate the necessary liquidity to support companies.
By funding their development and financial positions of these companies, Egypt aims to stimulate overall economic growth, the statement emphasized.
This deal is part of Egypt's broader initial public offering (IPO) programme, aimed at selling 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 for privatization, subsequently adding Eastern Company, Telecom Egypt, and Ezz El-Dekheila to the roster.
This privatization programme is a crucial component of Egypt's commitment under its $3 billion loan programme with the International Monetary Fund (IMF).
The government hopes to attract $5 billion through privatization between October 2023 and June 2024.
Egypt has already successfully collected $1.9 billion, according to a statement by Prime Minister Mostafa Madbouly in July.