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Monday, 10 September 2018

HSBC wins mandate for AMOC stake sale

**#1 EXCLUSIVE- HSBC has won the mandate to lead the sell-down of the state’s stake in the Alexandria Mineral Oils Co. (AMOC), an insider close to the transaction tells us. AMOC is in line to sell shares representing as much as 30% of the company’s equity on the EGX this year as part of the state’s reborn privatization program.

AMOC’s new refinery will cost around USD 1 bn to build, initial feasibility studies show, the company said in a filing to the EGX (pdf). The company is still looking at how to fund the project, which originally expected to cost USD 500 mn. Dutch consultant Fluor is working on the project, the details of which were expected to be unveiled at the end of August, according to previous remarks by AMOC Chairman Amr Moustafa, who had also said that the company plans to invest up to EGP 3 bn this year to implement expansion plans.

**#2 Zaki Hashem, Zulficar, Matouk Bassiouny shortlisted for Eastern mandate: High-profile law firms Zaki Hashem & Partners, Zulficar & Partners, and Matouk Bassiouny have made NI Capital’s short list to run legal on the EGX sale of 4.5% of cigarette maker Eastern Company, Amwal Al Ghad reports, citing sources with knowledge of the matter. EFG Hermes was tapped last week as bankers for the transaction, which is expected to pilot the privatization program. Heliopolis Housing, Abu Qir Fertilizers, and Alexandria Containers & Cargo Handling are also in line to to sell shares this year. A second wave of companies is expected to follow in early 2019.

In other news from the world of state-owned companies, Heliopolis Housing is reportedly vetting between three offers for a EGP 1 bn loan from Banque du Caire, QNB Egypt, and Banque Misr, sources told Al Shorouk. The company plans to use the facility for infrastructure projects at its New Heliopolis development.

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