Egypt sells 9.5% stake in telecoms firm for $122m

Reuters/Amr Abdallah Dalsh

The Egyptian government has sold a 9.5 percent stake in state-run Telecom Egypt for EGP3.75 billion ($121.6 million).

It represents the second sale of state-owned assets since Prime Minister Mostafa Madbouly vowed to proceed with the divestment programme and sell assets worth $2 billion by June-end.

The government sold more than 162 million shares for EGP23.1 per share on the Egyptian stock exchange. The volume of requests received in the first tranche reached more than 504 million shares, oversubscribed 3.11 times.

The finance ministry said the second tranche of an additional 0.5 percent, or 8.54 million shares, will be offered to the company’s employees until May 25.

Two local investment banks, CI Capital and Ahly Pharos, were managing the sale, Reuters reported, citing market sources.

However, the ministry did not disclose the portion of the shares sold to local and foreign buyers.   

In April Prime Minister Moustafa Madbouly said Egypt will not retreat from its programme of selling state assets.

Delays in selling stakes in state companies have been caused by the government’s keenness to secure the best return from the sale, he told a news conference.

As part of the $3 billion, 46-month financial support package signed in December with the International Monetary Fund, Egypt pledged to roll back the state’s economic involvement and allow private companies a much more significant role.