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Sunday, 10 February 2019

Telecom Egypt has no plans to sell Vodafone stake this year

M&A WATCH- Telecom Egypt has no plans to sell its 45% stake in Vodafone Egypt in the medium term,a company official told Youm7. Beltone Financial wrote in a research note in January that it expected the state-owned landline monopoly — which launched the country’s fourth mobile network, We, in September 2017 — to offload its stakes “after securing solid ground in the mobile market” of over 7% this year. The investment bank wrote that divesting from Vodafone Egypt will prevent it from duplicating its investments in the mobile sector, increase its liquidity and improve dividend payouts to shareholders. Sources close to the matter had suggested in October 2017 that the government was looking to put to rest the conflict of interest between Telecom Egypt and Vodafone Egypt before the end of that year. Then-ICT Minister Yasser El Kadi later denied these reports.

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