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Monday, 21 October 2019

Public Enterprises Ministry could offer investors management rights to three bus companies

PRIVATIZATION WATCH- Egypt is bringing its privatization drive to bus companies. The Public Enterprises Ministry could offer private investors the management rights to three bus companies before merging them together, Minister Hisham Tawfik said, according to Al Mal. The move to privatize the management of Upper Egypt for Transport, West Delta Bus Company, and Middle Delta Bus Company is meant to lay the groundwork for their restructuring and return to profitability, Tawfik said.

Is this the new flavour of privatization? Alongside stake sales and IPOs on the EGX, state-owned Heliopolis Housing is already offering management rights alongside a 10% stake sale. Under proposed amendments to the Public Enterprises Act, private-sector companies would be allowed to own stakes of just under 50% in the Public Enterprises Ministry’s holding companies. The amendments would also introduce private-sector-friendly board regulations by setting a cap on the number of government seats on the boards of state holding companies to seven.

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