CAIRO - 22 May 2024: Philip Morris International (PMI) announced on Wednesday the acquisition of a minority indirect stake, representing 14.7 percent, in the Egyptian state-owned tobacco manufacturer Eastern Company (EAST.CA).
Eastern Company is Egypt’s largest cigarette manufacturer, with a portfolio that also includes cigars and pipe tobacco, among other products.
The company clarified that as part of this acquisition, PMI and Eastern seek to explore, on a non-exclusive basis, potential strategic areas for mutual long-term collaboration in the fields of technology, manufacturing, and innovation. This includes heated tobacco products, paving the way towards a smoke-free future in Egypt.
“We look forward to exploring potential areas of cooperation with Eastern, including opportunities to provide adult smokers in Egypt with better options than cigarettes,” said Fred de Wilde, President of South & Southeast Asia, Commonwealth of Independent States, and Middle East and Africa.
In November, Chemical Industries Holding Company (CIHC) finalized the sale of a 30 percent stake in its subsidiary, the state-owned tobacco manufacturer Eastern Company, for LE 16.4 billion.
CIHC sold approximately 669 million shares to Global Investment Holding, an investment firm based in the United Arab Emirates (UAE).
Egypt is selling stakes in 35 state-owned companies through offering shares to strategic investors, via offerings on the EGX, or a mix of both.
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