Good morning, wonderful people, and a very happy Monday. It’s another gentle summer day as far as the newsflow is concerned, with just enough going on to keep things interesting.

Before we get underway: Thank you to everyone who wrote in with smart suggestions for what we should be speaking about at our 18-19 September Enterprise Finance Forum. We’re sifting all the replies and will be in touch over the coming week or so. Want to attend? Register your interest here. The first round of invites will be going out soon.

DRIVING THE AGENDA THIS MORNING- A big privatization presser? The Madbouly government is on Tuesday expected to hold a press conference at which it will announce the completion of a number of asset sales as part of the state privatization program, two senior government sources confirmed to Enterprise on condition they not be named.

We’ve been expecting this: Planning Minister Hala El Said said before the holiday the government had met itsinitial setof privatization targets and would make news of transactions public after the Eid holiday. Cabinet had been targeting asset sales of USD 2 bn by the end of June. By our math, it had raised USD 153 mn before the break through the sales of paintmaker Pachin and of 10% of Telecom Egypt.

Among the possibilities: Recent reports have suggested that there’s been progress in talks about Telecom Egypt’s stake in Vodafone Egypt, Egyptian Chemical Industries (Kima), Ethydco, and a number of state-owned hotels. There has also been chatter about one of the Siemens-built power plants, though we would be surprised if that has already gone through.

Expect the pace to pick up in the coming months: Our friends at the International Finance Corporation came on board in June to advise on the privatization program, and a new cabinet-level body aims to streamline the process, support the good folks at the Sovereign Fund of Egypt, and smooth any bureaucratic obstacles between ministries when it comes to privatization sales.

SOUND SMART #1- The IFC will spend an initial (multi-month) period taking stock of assets and expressions of interest before making recommendations. It would not be surprising if the IFC were to be interested in investing in select assets itself further down the road.

SOUND SMART #2- A veteran banker is quarterbacking the cabinet’s asset management unit. Mahmoud El Sakka (LinkedIn) has crossed over from the Central Bank of Egypt to take on the role. El Sakka comes from AAIB, where he led investment banking and corporate finance.

AT THE EGX-

THE BIG STORY here at home is the drama that accompanied Taqa Arabia’s EGX debut yesterday. Shares in the utilities company mysteriously soared 83,000% during its first day of trading after a direct listing on the bourse, handing the company a market cap nearly 50x higher than its assessed fair value.

Taqa will get a do-over debut in today’s session. We have the lowdown in this morning’s newswell, below.

WATCH THIS SPACE-

Sidpec to complete Ethydco merger this quarter: Sidi Kerir Petrochemicals (Sidpec) is set to finalize its all-share merger with the Egyptian Ethylene and Derivatives Company (Ethydco) by the end of 3Q,a source with knowledge of the acquisition told Enterprise yesterday. The company is now working to obtain regulatory approval for the takeover and will soon determine the price, they said.

See this as privatization-adjacent, folks: A number of GCC-based parties have expressed interest in taking a stake in the merged entity, we have previously been told.

Remember: EGX-listed Sidpec, which currently owns 20% of Ethydco, has been eyeing acquiring the remaining shares in the company since last year. The firm was said in March to have completed due diligence, and last week approved the fair value studies.

IN THE HOUSE TODAY-

Bye-bye, tax breaks for (some) state-owned entities: MPs will discuss and vote on a bill eliminating preferential tax treatment for some state-owned organizations, as well as a bill setting up an EGP 1 bn disability fund.

Today at the House committees:

  • The Legislative and Constitutional Affairs Committee will discuss a draft law on the settlement of commercial and civilian disputes;
  • The Industrial Committee will review the manufacturing industries’ contribution to the economy;
  • The Social Solidarity Committee will look into issues facing the Takaful and Karama subsidy program;
  • The Local Administration Committee will look into the impact of the law regulating car parking areas.

THE REALIGNMENT-

Is El Sisi headed to Turkey this month? There are reports out of Turkey that President Abdel Fattah El Sisi will be heading to Ankara at the end of July, El Hekaya’s Amr Adib said last night (watch, runtime: 1:29).

BACKGROUND: The two countries last week appointed ambassadors for the first time in a decade, restoring diplomatic ties and marking a significant thawing of tensions. Officials from both countries have said publicly that they’re preparing a first meeting between El Sisi and his Turkish counterpart Recep Tayyip Erdogan, though a date is yet to be announced.

THE BIG STORY ABROAD-

Ukraine’s bid to join Nato is taking center stage in the international press a day before the defense coalition’s summit kicks off in Vilnius, Lithuania. US President Joe Biden has said that allowing Kyiv to join Nato while the war with Russia continues would be “premature,” the Washington Postand New York Times report. Other member states are pushing the US and Germany to shift their “conservative” stance on Ukraine’s path to membership, the Financial Timesreports citing officials briefed on the talks.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we profiled Omar El Bakry, executive vice chairman of Insutech, our Manufacturer of the Month.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “reporter development program” in your subject line.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: How did Egyptian universities fare in this year’s Leiden-Dutch Center for Science and Technology Studies (CWTS) rankings?

Tags: