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Egypt offers to sell 10% government stake in Telecom Egypt

Egypt is offering to sell a 10% stake in state-controlled Telecom Egypt, sources with knowledge of the offer said on Monday.

The sale of state assets would be one of the first to buyers other than Gulf sovereign funds since President Abdel Fattah al-Sisi in April ordered the government to draw up a programme to attract $10 billion in “private participation” over each of the next four years.

The government owns 80% of Telecom Egypt’s shares. The sale is being managed by local investment banks CI Capital and Ahly Pharos, the sources added.

The sale of shares was directed at both Egyptian and foreign investors, one of the sources said.

“Both, but appetite from foreigners seems low,” the source added.

The 10% stake would be worth roughly 4.55 billion Egyptian pounds ($148 million) at the current share price.

Egypt has been suffering from an acute shortage of foreign currency since the Russian invasion of Ukraine prompted investors to pull around $20 billion out of its treasury markets.

Asset sales are a major pillar of a $3 billion support programme Egypt signed with the International Monetary Fund in December.

The government sold a 20% stake in Telecom Egypt in an initial public offering in November 2005.

Telecom Egypt owns a stake of about 45% in mobile phone operator Vodafone Egypt, which it is reportedly seeking to sell.

Telecom Egypt shares were trading 3.7% lower on Monday at 26.76 pounds. Reuters

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