Skip to content Skip to Search
Skip navigation

UAE company buys 30% stake in Egyptian tobacco maker

Global Investments will provide $150 million to purchase the necessary tobacco materials for manufacturing
Global Investments will provide $150 million to purchase the necessary tobacco materials for manufacturing

The UAE’s Global Investments Holding has acquired a 30 percent stake in Eastern Company, Egypt’s largest tobacco producer, for $625 million.

The sale is part of the Egyptian government’s programme of privatising state-owned assets.

Chemical Industries Holding Company, which held 50.95 percent of Eastern’s shares, last month announced that it had received offers from foreign investors to buy up to half of its shares.

Following the deal, Chemical Industries’ stake will fall to 20.9 percent, Daily News Egypt reported. The government had sold 4.5 percent of Eastern Company on the Egyptian stock exchange in 2019.

As part of the new deal, Global Investments will provide $150 million to purchase the necessary tobacco materials for manufacturing.

The Egyptian government expects to finalise the sale by the first half of 2024.

Eastern Company’s sales rose by 14 percent to EGP14.6 billion ($470 million) in the third quarter of 2022/23, compared to EGP12.8 billion a year ago. Total revenues grew to EGP54.83 billion in Q 32022/23, compared to EGP51.47 billion in Q3 2021/22.

Egypt plans to raise $5 billion by listing power plants and state-owned companies from October 2023 until the end of June 2024.

The government aims to sell stakes in the Siemens Beni Suef power plant, Gabal El-Zeit wind power plant and Zafarana wind farm, in addition to Safi and Watanya, companies owned by the military, Ahram Online reported, citing a cabinet report on the government’s initial public offering programme.

The state has collected $5 billion by offering stakes in 13 companies between March 2022 and July 2023.

Latest articles

The funding of Midas is among the 'biggest ever' Series A fund raise by a Turkish fintech

Turkish fintech Midas raises $45m for new products

Turkish fintech startup Midas has raised $45 million in equity funding to expand its services and launch new products. The new products include cryptocurrency trading, mutual funds and savings accounts. The funding is among the “biggest ever” Series A fund raise by a Turkish fintech and comes less than three years after Midas was launched.  […]

Plenary founder and director Paul Oppenheim, Plenary CEO David Lamming and Ahmed Ali AlShamsi, director of energy and utilities at ADQ

ADQ buys stake in Australian investment company

The UAE’s investment fund ADQ has acquired a 49 percent stake in Australian infrastructure investor Plenary Group as part of its expansion drive. The Abu Dhabi state-backed company will acquire all shares currently owned by Canadian pension fund Caisse de dépôt et placement du Québec, which will continue to invest in a range of Plenary’s […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]

Abu Dhabi’s last debt market activity included a $2 billion bond in May 2021 followed by a further $3 billion in September

Abu Dhabi launches $5bn bond issue

Abu Dhabi has initiated $5 billion in a three-tranche bond after a hiatus of three years, according to a media report. The $1.75 billion five-year bond, $1.5 billion 10-year tranche and $1.75 billion 30-year issue was priced at 35, 45 and 90 basis points, respectively, over US Treasuries, fixed income news service IFR reported. Abu Dhabi […]