$127 million.. The Egyptian government sells 10% of Telecom Egypt

Local media reports stated that the Egyptian government sold 170 million shares of Telecom Egypt at a price of 23.11 pounds, equivalent to 10% of its total capital, with a total value of 3.94 billion pounds (127 million dollars).

Egypt sold a 9.5 percent stake in state-run Telecom Egypt. It raised more than 3.7 billion Egyptian pounds ($121 million), signaling to investors that the country is serious about implementing a comprehensive economic reform programme.

162 million shares

The government sold 162 million shares in the telecom company, representing about 9.5% of the company's shares, according to a deposit on the Egyptian Stock Exchange.

  The share price reached 23.11 Egyptian pounds per share. Egypt plans to offer an additional 0.5% of its purchase to the company's employees.

The offer, which was discussed in March, marks a major step in the government's plan to sell state-owned assets in a bid to raise much-needed cash.

 Officials identified a list of 32 companies, including several banks and two military companies, that had been earmarked for sale. Little progress has been made, prompting fears that the country will delay moving forward with the programme.

International Monetary Fund

The payment is part of a broader effort to fix Egypt's ailing economy, which has seen its currency depreciate three times since March 2022, a move that helped secure a $3 billion program from the International Monetary Fund.

The offering of shares of Telecom Egypt, in which the government owns an 80% stake, began late last week. Officials marketed the price range for the shares at 22.22 pounds to 27.16 pounds.

second deal

The deal was considered the second deal of the Egyptian government within the governmental offering program, after the sale of the Paints and Chemical Industries Company - Pachin last week.

The offering program was previously announced last February, which comes within the implementation of the outputs of the State Ownership Policy document, and contributes to increasing foreign investment rates, enhancing private sector participation in economic growth, and expanding the ownership base.

The government’s share in Telecom Egypt will decrease after the deal is executed, to 70%, while major local and foreign investment funds acquired the shares. 

The deal will be executed through an accelerated offering mechanism to speed up the completion of the offering procedures, and to confirm the government's seriousness in implementing the offering program.

The most prominent information about Telecom Egypt: 

• About 20% of the company's shares are traded on the stock exchange.

• The company owns 45% of the shares of Vodafone Egypt.

• 44.3 billion pounds: the company's revenues during 2022.

• 9.2 billion pounds: the company's profits in 2022, with a growth of 9% over 2021.

• 3.2 billion pounds increase in the company's revenues from the data transfer service.

• The company achieved a 5% increase in the number of landline customers and a 19% increase in the number of fixed internet customers during 2022.

• The company attracted 3 million new customers for mobile services in 2022.

• 19 billion pounds, the company's total capital expenditures (investments) during 2022, including the value of new frequencies.