The Egyptian Ministry of Finance, the main shareholder of Telecom Egypt, has confirmed that the government is considering selling more of its stake in the telecom operator.
Telecom Egypt is currently evaluating the plan and has not made any official decision yet. The company also advised shareholders to be careful and prudent in their actions based on the information that has been officially disclosed.
The Egyptian government is proposing to sell a 10% stake in Telecom Egypt, according to sources familiar with the matter. The deal is estimated to be worth EGP 4.55 billion ($147.35 million).
The announcement comes after the government disclosed that it would sell its stake in 32 companies operating in 18 sectors by March 2024. The plan aims to raise financial resources and revive the economy, which is facing several challenges, including a foreign currency shortage.
The proceeds from the sale of part of Telecom Egypt could also be used to finance investments to improve the state-owned company's position in the mobile segment of the Egyptian telecom market. According to research, as of the second quarter of 2022, the operator controlled 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.
