CIHC considers selling 30% or less of its shares in Eastern Company

CAIRO – 23 August 2023: The Chemical Industries Holding Company (CIHC) received offers from investors who are interested to buy 30 percent or less of its shares in the Eastern Company. CIHC owns 50.95 percent of Eastern Company’s shares, according to an Egyptian Exchange (EGX) statement.

CIHC stated that they took this decision “in accordance with the government's directives regarding the program of listing state-owned companies on the EGX with the aim of expanding the ownership base, activating trading on the stock exchange, enhancing investment opportunities and benefiting from the returns of offering shares for development and restructuring processes.”

“CIHC is now studying the offers, and there is negotiation with these investors to choose the best one, as the implementation of the deal is linked to conducting due diligence," Eastern Company said in the EGX statement.

Egypt is selling stakes in 32 state-owned companies through offering shares in these companies to strategic investors and via offerings on the EGX and a mix of both. Egypt sold equity stakes in some of the state-owned entities worth $1.9 billion, with more deals to be announced soon.