Eastern renews contracts with BAT, Mansour to jointly produce cigarettes in Egypt
Eastern renews joint production contracts with BAT, Mansour: State-owned Eastern Company inked two five-year renewals of its joint production agreements with British American Tobacco (BAT) and Mansour International Distribution Co, according to an EGX disclosure (pdf). Under the agreement Eastern manufactures foreign “Target” cigarettes in partnership with Mansour, and “Pall Mall” and “Viceroy” cigarettes in partnership with BAT. The renewal of the former contract will take effect on 26 April and the latter on 3 June.
The news comes as we will see next week whether Eastern Tobacco will pilot the state privatization program. Sources had told us earlier this month that a debate over which company will pilot the program is being waged in the government, with the Prime Minister set to decide on the matter next week. Undoubtedly the contracts will give a welcome boost to Eastern’s shares should it kick start the program.