Minister Of Supply Visits EGX & Announces The Cabinet Direction Towards Increasing Market Cap. Of Holding Companies Through Public Offerings

During his visit to The Egyptian Exchange, Minister of Supply and Internal Trading announces new Government directed to increase capital of holding companies through the stock market
Hanafy: We are studying the possibility of increasing capital of Holding Company for Food Industries in The Egyptian Stock Market
Minister of Supply: governance and transparency imposed on companies listed in EGX is to better protect public funds
Omran: This is a pioneering step and we will be supporting Ministry of supply to take advantage of funding opportunities in the Egyptian stock exchange
Omran: There is growing appetite from investors’ side to invest in the food industry

During his visit to the Egyptian Exchange, Dr. Khaled Hanafy - Minister of supply said that the current Government is working on restructuring of holding companies subject to the provisions of law No. 203 for the year 1991 through public offerings in the EGX to raise capital and attract local and foreign investments.  This is the first time there are discussions of increasing capital of the Holding company and not affiliate companies to it.

This came on the sidelines of Dr Khaled Hanafy’s meeting with Dr. Omran in the preparations for the Economic Conference. The meeting discussed ways to deepen cooperation between the Ministry of Supply and EGX in terms of utilizing available funding platform of EGX to support financing of the Ministry of Supply or financial restructuring of companies that need to develop and raise financial funding.

Minister of Supply emphasized on Holding Company for Food Industries as the pilot for this initiative.  He added that placing public offering in EGX does not mean selling part of the company.  It only means using outside financial means in corporate restructuring of the Ministry and assisting them in upgrading their management and attract new investments.  He said that governance and transparency imposed by the limitation in Exchange for help Greater protection of public money and achieve the greatest return from it.

Dr. Omran said that this approach of is a pioneer one from the Ministry of Supply; studying a public offering for Holding company and not a subsidiary company to it.  This will help the company to increase its capital and support affiliated companies. He also mentioned that the Ministry owns a portfolio of companies that need new investments and restructuring.

Omran said the stock market has a huge base of local and foreign investors wishing to increase their investments in promising companies and helps in improving the economic growth rates in the State.  He said that investors have a huge appetite for investment in the food sector in Egypt, which has a promising growth opportunities, and recent months have seen a sharp competition for acquisitions of companies of the food industry such as Bisco Misr and Arab Dairy.

The meeting was attended by General Ibrahim Mohammed Ahmed Hassanein, Chairman of the holding company for Food Industries, Mr. Mohsen Mustafa, Vice Chairman for financial and administrative affairs and Mr. Ibrahim Mahmoud Ibrahim, Financial Advisor to the company.