Eastern Company stake sale set for 21-25 October
** #5 IPO WATCH- Eastern Company stake sale set for 21-25 October, timing not ideal: The sale of an additional 4.5% stake of cigarette maker Eastern Company on the EGX is scheduled to take place sometime between 21-25 October, Public Enterprises Minister Hisham Tawfik told the press yesterday, Youm7 reports. The government is committed to the schedule even though the timing of the transaction is less than ideal, according to Tawfik, who explained that the current drop in stock market volumes may cut into revenues from the sale (Eastern’s shares were down 4.0% at the end of yesterday’s trading session). State-owned investment bank NI Capital had said that the Eastern sale is expected to yield as much as EGP 2 bn in proceeds. EFG Hermes had signed contracts last week with the Chemical Industries Holding Company officially giving it the mandate to lead the transaction, which is expected to take the form of an accelerated bookbuild.
There could be up to 33 state companies selling stakes, not 23: The committee overseeing the privatization program has marked 10 public enterprises to add to its list of 23 companies, Tawfik also said, without naming the companies.