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Egypt Picks Banks to Manage Sale of Stakes in State-owned Companies

Egypt Picks Banks to Manage Sale of Stakes in State-owned Companies

Tuesday, 15 January, 2019 - 09:45
People walk beneath a Citibank branch logo in the financial district of San Francisco, California on July 17, 2009. REUTERS/Robert Galbraith/File Photo
Cairo - Asharq Al-Awsat
EFG Hermes and Citi will manage the sale of a stake in Alexandria Container and Cargo Handling, a government official said to Reuters on condition of anonymity.

Egypt’s CI Capital and Renaissance Capital will manage the sale of a stake in state-owned Abu Qir Fertilizers, he added.

Egypt is working on selling shares in dozens of state-owned companies over the next three to five years across several sectors to help boost public finances.

The government deferred the program of stake sale more than once due to fluctuations in local and global capital markets.

Al Mal newspaper quoted sources as saying that EFG Hermes and Citi won the tender of managing the sale of an additional 30 percent of Alexandria Container and Cargo Handling.

The Egyptian presidency announced in Jan. 2016 that stakes of government banks and firms will be issued during the coming period, but this didn’t happen till now.

Egypt is Citi’s most attractive frontier market for 2019, according to a research report that notes “the Sisi government is pushing ahead with an ambitious package of reforms, and while the country’s 2016 IMF program has faced some delays, the program is likely to underpin macroeconomic stability, supported by growth in gas production and tourism.”

Citi sees no significant devaluation in the cards, writing that “despite the recent surge in inflation, we expect currency stability and see decent upside among financials (CIB), construction (Orascom), real estate and consumer staples (Edita, Juhayna).”

Meanwhile, Egypt’s Minister of Finance Mohamed Maait expressed hopes in interest’s price reduction after the relapse of inflation averages in Dec.

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