Egypt's State Electricity Body to Become Limited Company
Egypt's state electricity body is to become a limited company, enabling the government to privatize it 49 percent, the government daily Al-Gomhuriya said in an article Tuesday, reporting a cabinet decision.
The report follows a decision announced Sunday by the Al-Ahram daily quoting Communications Minister Ahmad Nazif that the partial privatization of Egypt's telecommunications company will begin by June.
Egyptian market analysts hope the Telecom offering, expected to be one of the largest on the Egyptian stock market, will draw back foreign investors.
Al-Gomhuriya's report says the privatization of between 10 and 20 percent of the company will start in the next few days, and some of the shares will be reserved for its employees.
It said the exact proportion to be privatized, as well as the share price and date of the launch will be fixed shortly.
Prime Minister Atef Ebeid said earlier in the week that Egypt would press ahead with its privatization program, spearheaded by telecommunications, in order to reactivate the economy, which has been paralyzed by liquidity problems.
Since the privatization drive was launched in 1991 as part of economic reforms, only 134 of the 314 firms due to be privatized by 2000 have been fully or partially sold or liquidated, government figures show - (AFP)
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