Iraq Maintains Public Sector Stake in Mixed-Ownership Companies

By John Lee.

The Iraqi government has decided to retain the state's shares in mixed-ownership companies, rejecting any sale of public sector stakes.

The Cabinet said its decision on Tuesday was made to prevent losses to the public sector, as the true value of these companies is considered to be much higher than their current book value and capital.

Key directives include:

1. No Sale of Public Shares: The state will not sell its shares in mixed-ownership companies due to the potential financial loss and undervaluation of these assets.
2. Government Participation: Government entities are instructed to actively study and assess the actual status of the companies in which they hold shares to support their development.
3. Restriction on Ownership Changes: The state's share in these companies cannot be altered for any reason, including capitalization processes that might reduce the state's stake, without prior approval from the Cabinet.
4. Mandatory Attendance: State representatives on the boards of mixed-ownership companies are required to attend all meetings, especially those involving decisions on capitalization, to ensure the state's share is not diluted.

(Source: PMO)