Egypt is said to plan selling further 10% stake in Telecom Egypt
The drive is part of a broader program to revamp Egypt’s economy
Cairo: Egypt has revived plans to sell an additional 10 per cent stake in state-run Telecom Egypt through a share sale this month, according to people familiar with the matter, as the North African nation seeks to raise cash and reassure investors.
The company will start a book-building process aimed at institutional investors as soon as this week and shares will be listed on the Egyptian stock exchange, the people said, asking not to be identified because the matter isn’t public.
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The government has set the indicative price for the offering at 22.25 Egyptian pounds per share, they said, representing an offering size of about 3.8 billion pounds ($122.8 million). That represents a discount of 3.8 per cent to Telecom Egypt’s last close of 23.14 pounds.
Representatives for Telecom Egypt couldn’t be reached for comment. The country’s communications and information technology ministry declined to comment.
The offering, which had been discussed in March as one option to raise funds, will mark an important step in a drawn out process to sell state companies as part of a government push to exit some sectors, make room for private sector growth and attract international investors.
Telecom Egypt is 80 per cent owned by the government and hadn’t been included on an initial list of 32 state enterprises up for sale. The company also holds a 45 per cent stake in Vodafone Egypt, which officials have been considering to offload - in total or in part - to Gulf-based investors.