Emirati Businessman Acquires Stake in Eastern Company for Tobacco in Egypt

Emirati businessman Mohammed Al Abbar has purchased a portion of Eastern Company for Tobacco in Egypt from Emirati businessman Abu Bakr Abdullah Al Husseini.

Background

Emirati businessmen have acquired a stake in the Egyptian company through their company Global Investment. They distribute shares among themselves.

Agreement Signing

Egyptian Prime Minister Mostafa Madbouli witnessed the signing of an agreement to acquire 30% of the shares of the Eastern Company from “Global Investment Holdings Limited,” a company based in the UAE.

Deal Details

According to the agreement, Global Investment Holding Company Limited will acquire 30% of the total shares of Eastern Company (Eastern Company) for US$625 million. In addition, the buyer will provide $150 million for the purchase of necessary tobacco materials for production.

Government’s Perspective

Egyptian Business Minister Mahmoud Esmat stated that this deal demonstrates the government’s commitment to expanding the ownership base and encouraging private direct investment in various sectors.

Partnership and Market Stability

Under the agreement, Chemical Industry Holding will retain a 20.9% stake in the Eastern Company. This strategic partnership aims to contribute to the development of the industry, ensure market stability, and protect workers’ rights.

Increase in Cigarette Production

Eastern Tobacco in Egypt has decided to increase cigarette production by 40% for distribution in local markets. This decision was made in response to a significant increase in cigarette prices, particularly for Cleopatra cigarettes.

Market Impact

Oriental Tobacco Company has increased production to meet the demand and control high cigarette prices caused by merchant greed. The company now supplies over 150 million cigarettes per day in markets across various provinces, aiming to stabilize prices.

Source: Cairo 24+RT