UAE Company Outbids Philip Morris and Japan Tobacco, Invests $625 Million in Egyptian Tobacco Company

According to daily news in Egypt, Global Investments Holding Ltd., headquartered in the United Arab Emirates, has acquired a 30% stake in Eastern Company, Egypt’s largest tobacco producer, for $625 million. Under the agreement, the chemical holding company will retain a 20.9% stake in Eastern Company.

Global Investments Holding Ltd. will purchase a 30% stake in Eastern Company for a total price of $625 million (EGP 19.336 billion). The buyer will provide $150 million for the purchase of tobacco raw materials required for manufacturing.

The Minister of Public Enterprises stated that this transaction confirms the government’s commitment to expanding the ownership base and encouraging direct private investment in various sectors.

Previously, the Egyptian government stated that it expected to complete the sale of the stake in Eastern Company, Egypt’s largest tobacco producer, by the first half of 2024.

Bidders included Japan Tobacco International (JTI), United Tobacco Company (majority owned by Philip Morris International), and an investor from the Gulf region. Sources said that the bids from JTI and United Tobacco Company were both around $700 million.

Eastern Company announced that its sales in the third quarter of 2023 increased by EGP 1 billion, reaching EGP 14.6 billion, compared to EGP 12.781 billion in the third quarter of 2021/22, representing a growth rate of 14%.