Update: We cited Al Mal saying that the Eastern acquisition transaction decreased from USD 625 million to USD 530 million, suggesting a higher USD<>EGP exchange rate. The report wasn’t accurate. The actual value of the deal remains USD 625 million, with Global Investment Holding having paid USD 530 million and the remainder expected to be paid later.
The Clap
UAE-based Global Investment Holding (GIH) wrapped up its acquisition of 30% of EGX-listed Eastern Company.
What
Being part of the government’s privatization list, Eastern Company’s acquisition worth was changed from EGP 19.3 billion (USD 625 million) which was previously announced, to EGP 16.4 billion (USD 530.8 million).
So What
According to Al Mal, this change implies that the acquisition went through at an FX rate of EGP 38.11/USD compared to EGP 30.93/USD.
Now What
The government still owns 20.9% of the EGX-listed company, through the Holding Company for Chemical Industries.
Some context
Eastern in the headlines–A source told Enterprise that the Egyptian Competition Authority (ECA) received a complaint from tobacco distributors JTI-Nakhla and Al Mansour International Distribution Company (AMIDC) over Eastern’s practices to monopolize the market.
