Egypt To Offer State Shrs In Tobacco, Cement Cos - Report

[Robert Weissman <rob@essential.org>]

Egypt To Offer State Shrs In Tobacco, Cement Cos - Report
by Dow Jones Newswires
Date: Tuesday, 6/1/99

CAIRO -- Egypt's Ministerial Privatization Committee has approved in
principle the sale of state shareholdings in six companies, the
semi-official daily Al Ahram reported Tuesday. 

According to the newspaper, the Cabinet panel approved the sale of 15% of
Helwan Portland Cement Co. and 11% of Eastern Co., Egypt's monopoly
cigarette manufacturer.

The panel also approved the sale of 25% of Kafr El Zayat Pesticides &
Chemicals Co., 90% of Plastics & Electrical Industries Co., 90% of
Egyptian Starch & Yeast Co. and 35% of Arabian International Insurance
Co., Al Ahram reported.

Public Enterprises Minister Atef Ebeid told Dow Jones Newswires that the
government intended to sell the stakes in the six companies to strategic
investors.

He also said the government would follow with more sales of state shares
in Egypt's cement companies once the stakes currently on offer have been
bought up.

"We don't want to flood the market with cement equity," he said. "But it
will come in time."

So far in 1999, Egypt has sold off state-owned Beni Suef Cement Co. and
has offered large stakes in three others: Alexandria Portland Cement Co.,
Assiut Cement Co. and National Cement Co.

The state holds 47.5% of Helwan Cement, as well as sizable stakes in
partially divested Torah Portland Cement Co. and Amereyah Cement Co.

The panel's decision constitutes only an approval to sell the stakes,
which haven't yet been awarded to buyers.

-By Andrew Dowell; (2010) 149-9853; acce@ritsec1.com.eg