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Wednesday, 4 July 2018

State privatization program timeline could roll out before the end of next week; look for Eastern stake sale and ENPPI listing to lead in September and October

EXCLUSIVE- State privatization program timeline could roll out before the end of next week: The government committee tasked with oversight of the state privatization program is aiming to announce its detailed timeline as early as this week and no later than next, a source familiar with the program told Enterprise. The announcement, which will be made by Finance Minister Mohamed Maait, who heads the committee, will include: the dates of the share sales, the size of the share sales, and the current stage of readiness of the participating companies. Our expectation is that the announcement will be next week, based Maait having told Al Shorouk that the committee meet next week to sort out the final lineup of companies that will go out in the first wave of the program.

Eastern Tobacco to pilot program before end of September? In line with previous government statements, it now seems almost a certainty that a 4% stake sale by Eastern Tobacco will pilot the program. That’s to take place in the first quarter of the 2018-19 government fiscal year ending in September, the source told us. We still haven’t heard updates on the global tender to select advisers for the transaction, which was supposed to have taken place last month. Last we heard, three investment banks were pitching for the mandate.

This will likely be followed by Enppi in either September or October: The IPO of state energy firm Enppi will most likely follow the Eastern sale, possibly as early as September or October, the source added. Planning Minister Hala El Saeed is sending the same message, saying at a press conference yesterday that “The government will launch the ‘state IPO program’ in 4Q2018,” according to Youm7. El Saeed’s remarks also suggest the government is acknowledging we’re in the summer slow season during which no ECM transactions will go to market.

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