Telecom

Egypt confirms plans to sell its Telecom Egypt stakes

Egypt confirms plans to sell its Telecom Egypt stakes
Thursday, 09 March 2023 20:21

In February, the Egyptian government announced plans to sell its stakes in 32 companies by March 2024, in a context where economic growth is stalled by external shocks.  Telecom Egypt, 80% owned by the state, was rumored to be among the targeted companies.  

The Egyptian Ministry of Finance, the main shareholder of Telecom Egypt, has confirmed that the government is considering selling more of its stakes in the telecom operator.  It announced a release issued on the Egyptian Exchange (EGX) on Tuesday, March, 7.

According to Telecom Egypt, the plan is still in the consideration phase and no official decision has been taken yet. It also urged shareholders to exercise caution and circumspection in the dealings they base on officially disclosed information.

On Monday 6 March, Reuters reported that the Egyptian government is proposing to sell a 10% stake in Telecom Egypt, citing sources familiar with the matter. The deal, estimated to be worth EGP4.55 billion ($147.35 million), would reportedly be led by local investment banks CI Capital and Ahly Pharos.

The announcement comes after the government disclosed, in February 2023, that it would sell its stake in 32 companies operating in 18 sectors by March 2024. The plan was aimed to raise financial resources and revive the economy, which is facing several challenges including foreign currency shortage.

The proceeds from the sales of part of  Telecom Egypt could also finance investments to improve the state-owned company's position in the mobile segment of the Egyptian telecom market. According to market research firm Omdia, as of the second quarter of 2022, the operator was controlling 10% of the market, far behind  Vodafone Egypt (42%), Orange (26%), and  Etisalat (22%).

For FY2022, the company posted consolidated revenues of EGP 44.3 billion, an increase of 19% year-on-year. Its EBITDA reached EGP 17 billion while net profit increased by 9% year on year to EGP 9.2 billion, driven by strong operational performance.

Isaac K. Kassouwi

On the same topic
MTN has announced the launch of the MTN Cloud Accelerator, a 12-week hybrid program designed to help African startups scale faster by leveraging MTN’s...
Flutterwave gained a BCEAO license to operate in Senegal, expanding to 35 African countries. It targets growth in Africa’s booming $1.5T...
Nigeria plans to retrain ex-cybercriminals for careers in digital security and tech. A new academy will launch with 500 trainees, expanding later...
Reliable, high-capacity international connectivity is crucial for driving economic growth, enabling digital services, and promoting regional...
Most Read
01

• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0....

UEMOA: Inflation Drops to 0.6% in May, Driven by Lower Food Prices
02

• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its mai...

WAEMU Sees Easing Conditions on Regional Interbank Market
03

• The U.S. imposed a 20% tariff on cashew exports from Vietnam and a 40% tax on suspected transshipm...

U.S. Tariffs on Vietnam Cashews May Disrupt Trade, Hit African Growers (Interview)
04

Cauri Money launches Gajo Money, an e-wallet for the Cameroonian diaspora, targeting €120 mil...

Cauri Money Targets Cameroonian Diaspora with Digital Wallet Launch
05

• Qatar Airways and Kenya Airways establish strategic agreement, introducing a third daily flight be...

Qatar Airways Expands its Network in Africa, Building Presence in Kigali, Johannesburg, and Nairobi
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.