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UAE-based Global Investment acquires 30% equity of Eastern Company

UAE-based Global Investment acquires 30% equity of Eastern Company
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Eastern Co
EAST
6.70% 36.17 2.27

Cairo – Mubasher: UAE-based Global Investment Holding Limited acquired a 30% stake in Eastern Company’s shares at a value of $625 million, according to an official statement.

The Egyptian Prime Minister, Mostafa Madbouly, witnessed the signing ceremony, along with Mohamed Maait, Minister of Finance, and Mahmoud Esmat, Minister of Public Enterprises Sector.

Global Investment will provide $150 million to purchase the tobacco materials needed for manufacturing.

Under the deal, Chemical Industries Holding Company will retain its 20.90% equity ownership in Eastern Company.

Esmat highlighted that the acquisition deal aligns with Egypt’s initial public offering (IPO) programme to sell stakes in 35 state-owned companies to strategic investors by the end of June 2024.

The strategy aims to boost trading on the Egyptian Exchange (EGX) and enlarge investment opportunities, in addition to reinforcing the financial position of the listed firms.

During the first nine months (9M) of fiscal year (FY) 2022/2023, Eastern Company logged 24% higher net profits after tax at EGP 5.29 billion, versus EGP 4.25 billion in FY21/22.