New privatization system begins next week

The government intends to apply a new privatization system when selling the state-owned companies, said Minister of Public Business Sector Mokhtar Khattab, adding that under the new system 6 companies: Niaza, Edfina, Simaf, Bata, Automotive Engineering and Kafr Al-Dawar Dyeing will be put for sale.

ÊÊÊ The new system envisages raising the capital of the listed companies to 51 percent, consequently raises its ownership to give them the right of administration because a new investor pays the price of the company he buys and then find himself obliged to pump more funds for reparations and modernization.

ÊÊÊ The government would not yield to the demands of globalization in relation to the privatization program, which is being carried out according to economic and social conditions in Egypt, Khattab said, adding that bearing in mind trends in free-market economies, the state is continuing with the programme.

ÊÊÊ The state is fully committed to the privatization programme except those sectors which are producing non-competitive goods, Khattab stated during a press conference yesterday. "Six companies will be up for sale under a system of increasing capital," he said.