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Titan: All Posibilities For Strategic Investor In Egypt Possible

Titan is exploring the possibility to selll a minority stake of its Egyptian operations to an investor, “who would add value to the business,” an official announcement said.

Still, “reaching a relevant agreement will greatly depend on the level of the offered consideration and the capacity of any potential minority shareholder to add value,” the announcement read.

"The Egyptian subsidiary is one of the best group performers and, although the sale will bring in fresh money, it will add minorities to one of the most profitable business for Titan," Proton commented.

On the other hand, Bank of America-Merill Lynch says that “the most plausible justification for the disposal, in our view, is to collect cash for an acquisition which offers higher returns. It is our understanding that the Egyptian Government is currently in the process of issuing new permits to build Greenfield plants and we believe that such permits are quite expensive.”

The alleged interested parties include investment fund Carlyle Group and Mansour Group.

Titan executives told that only if the price meets the Groups demands the process to sale will go through,  and the stake for sale should be 45% or below.
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