No stake sales in state companies happening before September
EXCLUSIVE- No stake sales in state companies happening before September: The sale of additional stakes in already listed state companies will not take place before September, Public Enterprises Minister Hisham Tawfik tells Enterprise. The sale of an additional stake in Alexandria Containers and Cargo Handling Company (ACCH), Abu Qir Fertilizers, and Sidi Kerir Petrochemicals (Sidpec) will not take place before then due to the summer holidays and Eid break, explained Tawfik. He added that the likeliest date to resume the share sales, which come as part of the state privatization program, will be 4Q2019.
Where do things stand with these companies? Advisers on the share sale of ACCH (advised by EFG Hermes and Citi) have concluded roadshows in Dubai and London late last month, while Abu Qir (advised by Rencap and CI Capital) had been set to proceed with the sale shortly after the Eid break. Preparations are underway to kickstart the bookbuilding process of a 30% stake sale in Sidpec. There had been no share sales since Eastern Tobacco sold a 4.5% stake back in early March.
Should we expect a flurry of activity on the program towards the end of the year? State-owned companies selected to make initial public offerings of their shares will move forward with transactions starting in September as scheduled, Tawfik had told us back in June. Should the sale of additional stakes in ACCH, Abu Qir, and Sidpec take place around that time, we should be in for a busy 4Q2019 and early 2020.