{"id":589824,"date":"2023-07-10T00:00:00","date_gmt":"2023-07-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/10\/this-morning-madbouly-govt-tomorrow-set-to-announce-privatization-progress-at-press-conference\/"},"modified":"2023-07-10T00:00:00","modified_gmt":"2023-07-10T00:00:00","slug":"this-morning-madbouly-govt-tomorrow-set-to-announce-privatization-progress-at-press-conference","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/10\/this-morning-madbouly-govt-tomorrow-set-to-announce-privatization-progress-at-press-conference\/","title":{"rendered":"THIS MORNING: Madbouly gov\u2019t tomorrow set to announce privatization progress at press conference"},"content":{"rendered":"

Good morning, wonderful people, and a very happy Monday. <\/span>It\u2019s another gentle summer <\/span>day as far as the newsflow is concerned, with just enough going on to keep things interesting. <\/span><\/p>\n

Before we get underway: Thank you to everyone who wrote in with smart suggestions<\/span> for what we should be speaking about at our 18-19 September Enterprise Finance Forum. We\u2019re sifting all the replies and will be in touch over the coming week or so. <\/span>Want to attend? <\/span>Register your interest here<\/a><\/span>. The first round of invites will be going out soon. <\/span><\/p>\n

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

We\u2019ve been expecting this: <\/span>Planning Minister Hala El Said said before the holiday the government had <\/span>met its<\/a><\/span>initial set<\/a><\/span>of privatization targets<\/a><\/span> 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 <\/span>Pachin<\/a><\/span> and of 10% of <\/span>Telecom Egypt<\/a><\/span>. <\/span><\/p>\n

Among the possibilities: <\/span>Recent reports have suggested that<\/span> there\u2019s been progress in talks about <\/span>Telecom Egypt\u2019s stake in Vodafone Egypt<\/a><\/span>, <\/span>Egyptian Chemical Industries<\/a><\/span> (Kima), <\/span>Ethydco<\/a><\/span>, and a number of <\/span>state-owned hotels<\/a><\/span>. There has also been chatter about <\/span>one of the Siemens-built power plants<\/a><\/span>, though we would be surprised if that has already gone through. <\/span><\/p>\n

Expect the pace to pick up in the coming months: <\/span>Our friends at the <\/font>International Finance Corporation<\/a><\/span> 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. <\/span><\/p>\n

SOUND SMART #1- The IFC will spend an initial (multi-month) period taking stock of assets and expressions of interest<\/span> 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.<\/span><\/p>\n

SOUND SMART #2- A veteran banker is quarterbacking the cabinet\u2019s asset management unit. <\/span>Mahmoud El Sakka (<\/span>LinkedIn<\/a><\/span>) 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.<\/span><\/p>\n

AT THE EGX-<\/span><\/p>\n

THE BIG STORY here at home is the drama that accompanied Taqa Arabia\u2019s EGX debut <\/span>yesterday. <\/span>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. <\/span><\/p>\n

Taqa will get a do-over debut in today\u2019s session.<\/span> We have the lowdown in this morning\u2019s newswell, below. <\/span><\/p>\n

WATCH THIS SPACE-<\/span><\/p>\n

<\/a><\/span>Sidpec to complete Ethydco merger this quarter: <\/span>Sidi Kerir Petrochemicals (Sidpec) <\/span>is set to finalize its all-share merger with the Egyptian Ethylene and Derivatives Company (Ethydco) by the end of 3Q,<\/span>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. <\/span><\/p>\n

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

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

IN THE HOUSE TODAY-<\/span><\/p>\n

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

Today at the House committees: <\/span><\/p>\n