Telecom Egypt issues explanatory statement regarding offering new stake in stock exchange

CAIRO - 7 March 2023: Telecom Egypt issued an explanatory statement regarding what is being circulated about the Egyptian government's intention to offer 10 percent of its 80 percent   stake in the company's capital.

 

The company said in a statement, Tuesday, that it had contacted the main shareholder, which is the Ministry of Finance, which stated that the matter did not go beyond a preliminary study that is still in its infancy and preliminary stages.

 

It confirmed that it had not taken any official decisions regarding this statement; which may lead to the conclusion of this study to the futility of moving forward with this proposition.

 

The Egyptian company explained that the main shareholder's thinking of offering part of Telecom Egypt came within the framework of what was included in the state ownership policy document on maximizing government resources through the assets owned by it.

 

Informed sources told Reuters on Monday, Egypt is offering a 10 percent government-owned stake in Telecom Egypt for sale.

 

The sources indicated that the sale will be managed by CI Capital and Al Ahly Pharos Bank.

 

The government owns 80 percent of Telecom Egypt's shares, and 20 percent is traded on the Egyptian Stock Exchange (EGX).

 

Telecom Egypt's net profits increased by 9 percent on an annual basis in 2022, amounting to about LE 9.2 billion, according to the company's financial results announced Monday.

 

Telecom Egypt's revenues increased in 2022 by 19 percent, amounting to LE 44.3 billion.

 

The increase in the company's revenues was driven by an increase in the revenues of the retail business units and the wholesale business units by 21 percent and 17 percent, respectively.

 

The number of fixed-line subscribers increased by 5 percent, and the number of fixed-high-speed internet customers increased by 9 percent.

 

The number of mobile subscribers increased by about 3 million, supported by an increase in government initiatives and projects, which amounted to 1.5 million new subscribers.