Sold Telecom Egypt shares worth $122.8m
ALBAWABA – The government of Egypt sold a 9.5 percent stake in Telecom Egypt (ETEL) for an estimated $122.2 million (EGP3.745 billion), Egyptian newspaper al-Ahram reported on May 14.
According to a statement by the Ministry of Finance, more than 162 million shares were sold last Thursday, at $0.75 (EGP23.11) per share.
The Egyptian government held 80 percent of the telecommunications company’s equity up until Thursday.
Another batch of shares is to be offered at around 5 percent of the company’s equity, starting today, Sunday through Thursday, May 25, the ministerial statement said.
Up until last week, 20% of the Telecom Egypt company's shares were being traded on the Egyptian Exchange (EGX).
According to Zawya, large portions of the stake were purchased by local investors, while Arab and foreign investors just acquired a limited number of the offered shares.
This is a long-awaited first step in the government’s initial public offerings (IPO) program, the outlet explained.
It is the first sale to buyers other than Gulf sovereign funds since President Abdel Fattah al-Sisi in April ordered the government to draw up a private participation programme.
The programme is supposed to attract $10 billion in "private participation" over each of the next four years, according to Reuters.
Explaining the sale of Telecom Egypt shares
Egypt has been suffering from an acute shortage of foreign currency since the Russian invasion of Ukraine.
Reuters noted that the invasion prompted investors to pull around $20 billion out of Egypt’s treasury markets.
Asset sales are a major pillar of a $3 billion support program Egypt signed with the International Monetary Fund in December.
In November 2005, the government sold a 20 percent stake in Telecom Egypt in an initial public offering.
Notably, Telecom Egypt owns a stake of about 45 percent in mobile phone operator Vodafone Egypt, which it is reportedly seeking to sell, Reuters highlighted.
