Egypt sells 9.5% stake in Telecom Egypt for $128m

Egypt sells 9.5% stake in Telecom Egypt for $128m
Egypt government sells 10% stake in Telecom Egypt.

Egypt government raised more than 3.7 billion Egyptian pounds ($128 million) after selling a 10% stake in the state-run Telecom Egypt Co., according to the Egyptian Exchange.

The government sold 162 million shares in the telecommunications company, representing about a 9.5% stake in the firm and 0.5 % to employees of the Telecom Egypt Co., according to a filing to the Egyptian Exchange. 

According to a separate filing, the shares were priced at 23.11 Egyptian pounds each.

The sale was 2x oversubscribed, according to local press reports.

The deal came within the Egyptian government’s plan to boost its current economic situation, which has been affected by the global and regional conditions amid the Russian-Ukraine war. 

The country is currently ahead of a list of 32 companies that are planned to be sold to raise a targeted amount of US$2 billion.

The 32 companies include several banks and two military-affiliated companies, that were earmarked to be sold. 

The push is part of a broader effort to boost the current economy, which has seen the currency devalued three times since March 2022 —- a move that helped secure a $3 billion program from the International Monetary Fund. 

Bookbuilding for the offering of Telecom Egypt shares, in which the government held an 80% stake, began late last week.

Officials set the price range of the shares at 22.22 pounds to 27.16 pounds.

CI Capital and Al Ahly Pharos reportedly managed the transaction, while NBE is also said to be involved as an advisor.

Overall, the TE transaction should send positive vibes to the international side after concerns there are slow steps towards progressing for the IMF USD3 billion assistance package, as well as plugging external financial gaps. 

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