Investment Banking Assistance to Egypt's
Privatization Program
Completed 5/31/99
Senior Staff involved: Howard Edwards, Headquarters Supervisor
PAS provided
investment banking technical assistance to accelerate Egypt's Privatization
Program for six months. Egypt's Privatization Program has been characterized
by progress mixed with challenges that in turn inhibit domestic and foreign
investment. The Privatization Program of Egypt was done in the past using
"IPO methods" (simply selling shares in the stock market), which had in fact
hindered the development of the capital market and slowed the pace of
privatization. The anchor/strategic investments approach was seen as the
best method to increase competitiveness and efficiency of privatized firms.
In providing investment banking technical assistance, PAS pursued the
following activities:
1. Assisted
the Government of Egypt with appropriate privatization strategies,
valuations, and methodologies readily recognized in the international
community.
2. Reviewed
and improved the quality of the privatization selling document, which
includes informational memos, prospectuses, brochures, advertising
materials, and related manuals.
3. Prepared
the model type contracts for the alternative privatization methodologies,
through anchor strategic sales document, management contracts and/or leasing
agreements, concessional agreements, and management buyouts. Conducted
monthly seminars and workshops on the above topics.
4. Provided
support needed in order to identify potential investors including
scheduling, planning, and conducting research, and information campaign for
potential strategic investors.
Provincial Cities Master Plan Project
Technical
assistance and consultant services provided in the development, management,
and implementation of the provincial cities infrastructure development
project for improving delivery of basic local government services in the
cities of Fayoum, Bene Suef, and Minia. Services included development of
both water and sewer master plans for each city.
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