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Sunday, 3 July 2016

IPOs won’t lead government companies to profitability due to administration -Shalakany

Government plans to list shares on the Egyptian Stock Market won’t bring state-owned companies to profitability due to issues that need to be addressed within their administration, Shalakany Law Office Senior Partner Emad El Shalakany told Al Borsa. The state restructuring its companies will only offset the problem through a capital increase, after which the same faulty administration will turn the companies back to losses, he added. The state should keep only 10-15% of its equity in the companies and retain a regulatory role, said Shalakany.

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