The Egyptian government is seeking to sell a stake in El-Nasr Fertilizers and Chemical Industries Company (SEMADCO) to a strategic investor from the Gulf and foreign funds interested in acquiring a share from it, sources close to the deal informed Daily News Egypt.
The Holding Company for Chemical Industries owns all the shares of SEMADCO.
The sources added that the Holding company for Chemical Industries is currently evaluating the company and determining the fair value of the share, which is expected to be completed within a month.
The sources stressed that the trend is to sell a share in order to provide dollar liquidity, as well as increase the participation of the private sector in the Egyptian economy, in line with the state’s directives.
EGX witnessed last Thursday the implementation of a deal in the OTC market worth $42m, equivalent to EGP 1.3bn, on the shares of Helwan Fertilizers Company.
The Extraordinary General Assembly of El-Nasr Fertilizers and Chemical Industries Company, held last August, decided to approve the company’s continuation in performing its activities in the implementation of the provision of Article No. 38 of the Public Business Sector Companies Law No. 203 of 1991 amended by Law No. 185 of 2020 and its executive regulations.
Moreover, the assembly said that the company must take the necessary measures towards developing an effective plan to improve its production and sales capabilities to enhance its ability to continue.
Recently, Egypt has launched the State Ownership Policy as part of a wider plan to restructure the economy in favour of the private sector.
The strategy aims to boost the private sector’s role in the economy to 65% over the next three years and attract $40 bn in investment by 2026.