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Monday, 18 September 2017

TE may be forced to exit Vodafone Egypt as it enters mobile market, rolls out 4G

M&A WATCH- For the “nth” time, analysts suggest TE could be forced to divest its stake in Vodafone Egypt as the state-owned giant enters the mobile market, rolls out 4G services.Stop us if you’ve heard this one before: Telecom Egypt may be forced to divest its full 45% stake in Vodafone Egypt because it needs the capital to help roll out 4G — and to avoid a conflict of interest as it enters the mobile phone market, sector analysts tell Reuters’ Arabic service. TE could make losses in the next four to five years, as it pays some USD 400 mn to establish its network, build infrastructure, and obtain licenses, according to EFG Hermes telecom analyst Omar Maher. TE also borrowed EGP 13 bn from a consortium of banks under an agreement signed in July to help fund its EGP 7.08 bn 4G license for which it has paid EGP 5 bn so far.

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