Egyptian privatization moves forward

The Egyptian Electricity Authority (EEA) has chosen a consortium of Merrill Lynch & Co. and EFG-Hermes to manage the sale of the country`s power companies. The EEA is said to be keen on bringing the sale of the assets to market as quickly as possible.

Merrill Lynch and EFG-Hermes will value and manage the sale of minority stakes in Egypt`s seven state-owned electricity generation and distribution companies. The sale is thought to be Egypt`s most valuable offering of state assets.

The government has been authorized to sell up to 49 per cent of the state`s shares in the seven companies. The consortium will begin by evaluating Cairo Electricity for the sale of 20 per cent of the company.

The sales will be an important part of Egypt`s move to a market-led economy and will also attract foreign investment.