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Thursday, 9 August 2018

Maait reassures private sector their role in privatization program is secure

EXCLUSIVE- Maait to private sector service providers: We have a piece of the IPO program for you. Finance Minister Mohamed Maait is reassuring private-sector bankers, lawyers and other advisers that they will have roles to play in the share sales of five companies piloting the state privatization program. The minister made the remarks in an exclusive interview with Enterprise. State-owned NI Capital will manage three of the five stake sales, he said, leaving the remaining two up for grabs by the private sector. The government will hold tenders for legal counsels and financial advisers for all five of the share sales, he noted. As we noted earlier this week, NI Capital had been tapped to manage share sales for Alexandria Container and Cargo Handling and Heliopolis for Housing and Development. We expect the third company in its roster will be Alexandria Mineral Oils Company (AMOC). Chemical Industries Holding Company (CIHC) Chairman Emad El Din Mostafa had said that NI Capital was organizing a limited tender for private sector banks to manage share sales for Eastern Company and Abu Qir Fertilizers.

Maait also noted that the government hopes this initial phase would bring in EGP 20 bn in new investment, with the treasury’s share of the stake sale looking to reach EGP 8-10 bn. The first of the offerings will take place in October, with Maait reiterating that shares in all five companies will be sold by December.

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