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The shares will reportedly be made available to both foreign and domestic investors
This week, sources speaking to Reuters report that the government is looking to offload a 10% of its 80% stake national network operator Telecom Egypt.
At its currently share price, this stake would be worth around $150 million.
According to the report, the government will be open to both domestic and foreign investors.
The news of a stake sale should come as no real surprise. The Egyptian government is going through something of a financial crisis, having become an indirect victim of the Russian invasion of Ukraine when investors quickly withdrawing around $20 billion in foreign capital at the start of the conflict. The resulting dollar scarcity left the government on shaky financial footing, resulting in an agreement with the International Monetary Fund for a loan of $3 billion late last year.
In part due to these financial troubles, the Egyptian government has placed a renewed focus on monetising state-held assets, aiming to raise $10 billion annually for the next four years through various sales.
Back in October, it appeared likely that one such sale would be to the Qatar Investment Authority (QIA), having initiated talks to purchase 20% of Telecom Egypt’s stake in Vodafone Egypt. As the year drew to a close, these discussions had evolved to encompass a bigger stake purchase, rising first to 25% and finally to the full 45% stake held by Telecom Egypt.
By last month, however, these discussions had reached something of an impasse, with the Egyptian government seeking to sell at the share’s improved price, while the QIA was insistent on moving forward with the company’s earlier valuation.
These discussions are still ongoing.
In related news, Vodafone Group itself transferred ownership of its 55% stake in Vodafone Egypt to Vodacom Group at the end of 2022.
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