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Monday, 30 April 2018

TE reportedly close to signing EFG Hermes as adviser on MENA Cables acquisition

M&A WATCH- Telecom Egypt is reportedly close to tapping EFG Hermes as an adviser on an acquisition of MENA Submarine Cable Systems from the Orascom Telecom Media and Technology (OTMT), sources tell Al Mal. Neither TE or OTMT have publically acknowledged a transaction is in the works. However, TE had announced late last month that it is trying to arrange financing for a potential investment opportunity in submarine cables, in part by reducing its proposed dividends to shareholders. This coincided with a statement from OTMT saying that it is still planning to sell MENA Submarine Cable Systems for USD 90 mn, even though it had denied earlier reports that it was approached by TE. Sources tell the newspaper that acquisition is to ensure that the state has full control of the cable.

Is Naguib Sawiris really bowing out of the telecoms game? That’s what the Egyptian businessmen reportedly said at a conference yesterday. Naguib said he plans to exit whatever investments he still had left in the telecoms sector to concentrate on real estate, agriculture and financial services, noting that there are “serious discussions to sell his investments in cabling projects in Egypt.”

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