Eastern Tobacco Company Receives Offers from Foreign Investors for 30% Stake

Eastern Tobacco Company Receives Offers from Foreign Investors for Stake Sale

Egypt’s largest cigarette maker, Eastern Tobacco Company, has announced that it has received several offers from foreign investors to purchase up to a 30% stake in the company. The proposals are currently being evaluated and discussed with potential buyers to select the best offer. The transaction will undergo a due diligence process, as the Chemical Industry Holding Company has received offers from foreign investors to acquire a stake not exceeding 30% of its total stake, which currently stands at 50.95% of the shares of Eastern Company.

State Directives Drive Listing of State-Owned Companies on Egyptian Stock Exchange

The Eastern Company’s decision to consider selling part of its shares is in line with the state’s directives to list state-owned companies on the Egyptian Stock Exchange. This move aims to expand the ownership base, stimulate trading activities, increase investment opportunities, and generate income from the placement of shares for development, modernization, and restructuring purposes.

Strong Financial Performance of Eastern Company

Notably, Eastern Company recorded a profit of £5.29 billion between July and March 2023, marking a significant increase from the profit of £4.25 billion during the same period in the previous financial year. The company’s revenue also witnessed growth, reaching £14.6 billion during the period, compared to £12.78 billion in the corresponding period of the previous fiscal year, representing a growth rate of 14%.

About Eastern Tobacco Company

Eastern Tobacco Company, a public company listed on the Egyptian Stock Exchange since September 1995, is the largest cigarette manufacturer in Egypt. The company is majority-owned by Chemical Industry Holding Company, a subsidiary of the Ministry of Public Business Sector, which currently holds approximately 50.95% of the company’s shares.

Source: RT