
According to Ahram Online on July 29, the board of directors of Egypt's state-owned tobacco manufacturer, Eastern Company (EAST.CA), has approved the sale of the land, buildings, and currently leased equipment of its ninth factory to United Tobacco Company (UTC), a subsidiary of Philip Morris International (PMI), for 1.584 billion Egyptian pounds (326.1 million USD).
The company's statement released to the Egyptian Stock Exchange states that the transaction amount is the average of three valuations provided by a valuation company certified by the Central Bank of Egypt (CBE).
The statement indicates that the contract will be terminated if approval from the Industrial Development Board is not obtained or if any party fails to comply with the terms of the contract, unless otherwise agreed upon by both parties.
Furthermore, the contract approval allows UTC to waive the remaining annual rental value to be paid according to the lease agreement, which will expire on April 26, 2026.
The statement also indicated that approval has been obtained for entering into the swap contract.
It has been reported that PMI announced in May 2024 that it has indirectly acquired a 14.7% minority stake in the company.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.