ECHEM appoints Compass Capital to sell its 26% stake in EPP

CAIRO – 12 February 2024: The Egyptian Petrochemicals Holding Company (ECHEM) appoints private equity firm Compass Capital, to sell its 26 percent stake in in the state-owned thermoplastic producer, Egyptian Propylene and Polypropylene (EPP). The appointment aims to promote the sale of the government’s share in EPP in in the Gulf region, and mainly East Asian countries.

 

EPP is one of the 35 state-owned companies that is part of Egypt’s initial public offering (IPO) program. The program has yielded $5.6 billion, with the sale of complete or partial shares in 14 state-owned companies. 

 

The government expects to rise proceeds of up to LE 70 billion from government IPO program during 2024, according to data from the Egyptian Cabinet. This represents 0.6 percent of the gross domestic product, in the draft budget for the fiscal year 2023/2024.

 

The Minister of Planning and Economic Development, Hala El Said, previously announced that Egypt is close to receiving the final bid for the acquisition of shares in Wataniya, which is one of the companies in Egypt’s IPO program. In August 2023, Egypt received initial offers for the acquisition of shares in Wataniya ranging between $250 and $280 million, according to sources cited by Asharq Bloomberg.