The Government of Egypt is offering to sell a 10% stake in the state-controlled Telecom Egypt. Telecom Egypt is Egypt's first integrated telecom operator and one of the region's largest subsea cables operators, which recently secured additional spectrum with a 10-year validity in 1800 MHz band.
Also Read: Telecom Egypt Secures Additional Spectrum in 1800 MHz Band
Since President Abdel Fattah al-Sisi ordered the government in April to develop a program aimed at attracting $ 10 billion in "private participation" annually over the next four years, the sale of state assets will be offered to buyers other than Gulf sovereign funds as a top priority, according to a report by Reuters.
The government of Egypt owns 80% of Telecom Egypt's shares. The report added that local investment banks CI Capital and Ahly Pharos are managing the sale. The 10% stake would be valued at approximately $ 148 million or 4.55 billion Egyptian pounds at the present share price. As part of the $3 billion support program that Egypt entered into with the International Monetary Fund in December, asset sales serve as a critical component. The government sold a 20% stake in Telecom Egypt in an initial public offering in November 2005.
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The sale of shares was directed at both Egyptian and foreign investors. "Both, but appetite from foreigners seems low," the report quoted a source. Egypt has been facing a severe shortage of foreign currency, and the geopolitical issues have prompted investors to pull around $20 billion out of its treasury markets.
In related news, Vodafone Group has completed the transfer of its 55% shareholding in Vodafone Egypt to Vodacom, its African subsidiary, in December 2022. As a result, Vodafone has been issued 242 million shares in Vodacom and received cash proceeds of 577 million Euros in exchange for its 55% shareholding in Vodafone Egypt. Following completion, Vodafone's shareholding in Vodacom has increased from 60.5% to 65.1%.
