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Egypt to sell stake in state-owned engineering, real estate firms

Egypt plans to a sell up to a 30% stake in 23 of state-owned companies as part of an economic reform programme.

Amr Al-Jarhi, Egypt's Minister of Finance.
Amr Al-Jarhi, Egypt's Minister of Finance.

The Egyptian government plans to a sell up to a 30% stake in 23 of state-owned companies including one engineering, procurement and construction (EPC) contractor and two real estate developers.

Egypt’s Ministry of Finance announced plans to sell a share of between 15-30% in EPC contractor the Engineering Company for Petroleum and Chemical Industries (ENPPI), and Heliopolis Housing and Development Company, and Madinet Nasr City Housing & Development Company.

The major sale of shares in government-owned companies comes as part of Egypt’s comprehensive economic reform programme.

READ: Egyptian developer launches $272m mixed-use project in Dubailand

Shares in 23 companies across sectors including banking, petrochemicals, and real estate will be floated on the Egyptian Stock Exchange over a period of 24 to 30 months, Egypt’s Ministry of Finance said.

Floating publically on the stock market is expected to boost capital financing of Egyptian companies, encourage invest into Egypt and maximise the value of state assets. The sale of all shares could raise as much as $4.6bn (EGP80bn), according to the government.

ENPPI claims to be a major engineering and EPC contractor. The bulk of its project experience comes from onshore and offshore oil and gas, refining, and petrochemical industries. The company was the main contractor for installing pressure boosting equipment at a gas compression facility in Qasr, western Egypt. It has also been involved in major projects in Kuwait, Saudi Arabia and Venezuela.

Madinet Nasr City Housing & Development Company, founded in 1959, is a real estate development business. Its most recent project, Sarai, is the development of a mixed-use community complex along the Cairo-Suez road with a mix of real estate units including apartments, townhouses, and villas.  The massive project in New Cairo occupies a land area of 5.5km², according to the property developer.

Heliopolis Housing and Development Company claims to be “the oldest” real estate investment company in the Middle East, as it was founded in 1906. Its recent projects includes a $420,000 (EGP7.4m) bill to build a water supply line in Heliopolis, Egypt.

Egypt's Ministry of Finance confirmed its plan to sell state-owned assets by posting its plan on Twitter.

تنفيذ برنامج طموح للطروحات الحكومية لتوفير تمويل للشركات المصرية  https://t.co/98hx0ABLR0

— وزارة المالية - مصر (@MofEgypt) March 18, 2018

 

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