Egypt to Sell 10% Government Stake in Telecom Egypt: Report

The government of Egypt owns 80 percent of Telecom Egypt's shares. The 10 percent stake would be valued at approximately $ 148 million or 4.55 billion Egyptian pounds at the present share price.

Highlights

  • 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.
  • Telecom Egypt recently secured additional spectrum with a 10-year validity in 1800 MHz band.

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Egypt to Sell 10% Government Stake in Telecom Egypt: Report

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.

Also Read: Telecom Egypt and Grid Telecom to Build Subsea System Connecting Egypt and Greece

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%.

Reported By

Aparna, from a journalism background, closely follows the developments in the telecom Industry.

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