Alamal Alsharif Plastics stake sale next year? The government is looking to sell a 30% stake in state-owned plastics manufacturer Alamal Alsharif Plastics to a single strategic investor, A sharq Busine ss reports, citing two unnamed government sources it says are in the know.

Advisor TBA: The state is close to appointing a local investment bank to advise on the sale, which it expects to take place by 1Q 2024, according to the report.

A transaction worth EGP 2.1 bn? The plastic pipe maker has a market value of some EGP 7 bn, one of the sources is quoted as saying, putting the value of a 30% stake at some EGP 2.1 bn. As with any M&A transaction, the final ticket price will depend on the results of independent valuations and negotiations with potential buyers.

Who owns what? Some 47% of Alamal Alsharif is held by state-owned banks including the National Investment Bank (with a 29.5% stake), the National Bank of Egypt (11.3%), United Bank (5.3%) and Suez Canal Bank (0.5%), according to the company’s w ebs ite. The remaining 53% is held by unnamed individual shareholders.

Remember: Alamal Alsharif is one of 35 state-owned assets earmarked for privatization as part of the reform agenda agreed with the IMF under the USD 3 bn loan program. The government is now aiming to raise USD 5 bn from asset sales between October 2023 and June 2024.

More rumors of an Ebank sale: A sharq Busines s is the latest to report that the government is planning to add the EGX-listed Export Development Bank (Ebank) to its privatization program, citing unnamed sources it says are in the know. State financial institutions currently hold an 84% stake in Ebank.

Remember: Ebank denied any knowledge of a potential sale to private investors lastmonth . A recent change in the establishment laws governing Ebank and two other local lenders — bringing the three banks’ governance fully in line with the 2020 Banking Act and removing potential obstacles to restructuring them — had added to speculation that Ebank could be up for a sale. An early study was underway to explore the idea of the bank bringing on board new investors via a capital increase, local media reported back in April.

Could 35 become 40? The government plans to expand the number of companies in its IPO program from 35 to 40 companies, Asharq adds.

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