According to reports from Reuters and Ahram Online, Global Investment Holding Company (GIHC) has completed the acquisition of a 30% stake in Eastern Corporation. The United Arab Emirates company spent 16.4 billion Egyptian pounds ($531.6 million) to acquire a stake in the Egyptian tobacco company.
The deal was first announced in September as part of Egypt's troubled privatization program. In December 2022, the Egyptian government committed to the International Monetary Fund that it would allow private companies to play a greater role in Egypt's economy in exchange for a $3 billion, 46-month package of financial support.
While a number of sales plans to foreign investors have been announced in principle, the sale to GIHC is the first to be completed.
Under the agreement, the UAE company will provide $150 million to Oriental to purchase tobacco materials for production.
In addition to Dongfang Chemical, Dongfang Chemical's main shareholders are state-owned chemical holding companies (20.9%), Allen Gray Stock Fund (7.2%), Dongfang Chemical Shareholders Alliance (6%), and the remaining 36% of the shares are freely traded on the stock exchange trade.
