CAIRO, May 28 (Reuters) - Egypt’s state-owned Holding Company for Chemical Industries has agreed to sell up to 4 percent of its stake in Eastern Tobacco on the Cairo exchange, Minister of Public Enterprise Khaled Badawy said in a statement on Monday.
Badawy, who also heads the holding company, said the move is part of the government’s broader initiative to sell stakes in various state companies on the Cairo exchange to raise government funds and draw more investors to the exchange.
In March Egypt announced the names of 23 state companies that will sell stakes this year under a plan to raise 80 billion Egyptian pounds ($4.47 billion) through minority share offerings on the Cairo bourse.
Badawy said proceeds from the Eastern Tobacco sale will be used to restructure and develop subsidiaries of the chemical holding company. ($1 = 17.9050 Egyptian pounds)
Reporting by Ehab Farouk Writing by Eric Knecht Editing by David Goodman