Global Investment Holding to invest $150M in Eastern Company in 2024

CAIRO - 20 November 2023: Global Investment Holding (GIH) has announced its plans to provide Eastern Company with a investment of $150 million in hard currency in 2024.

This move aims to enhance the company's capacity to procure manufacturing inputs and boost its overall operations, according to local media reports.

The announcement comes after GIH successfully acquired 669 million shares in Eastern Company, a subsidiary of the state-owned Chemical Industries Holding Company (CIHC), at a price of EGP 28.90 per share. As part of the agreement, CIHC will receive additional installments totaling $94.8 million in 2024, subsequently bringing the total value of the transaction to an impressive $625 million.

The acquisition of Eastern Company by GIH marks a significant milestone for the government, representing the largest single asset sale since the revitalization of Egypt's privatization strategy earlier this year.

The cabinet's Information and Decision Support Center (IDSC) issued a report last month highlighting the government's target to raise up to EGP 70 billion through its initial public offering (IPO) program in the financial year 2023/2024.