Cairo, Egypt–Egypt has sold a 9.5% stake in state-controlled Telecom Egypt for $121.6 million, the finance ministry said in a statement on Sunday.
In order to meet a slew of foreign debt obligations over the coming few months, the North African country needs privatisation proceeds.
Telecom Egypt’s is the second sale of state assets since Prime Minister Mostafa Madbouly promised on April 29 to press ahead with the sales programme and sell assets worth $2 billion by the end of June.
Under a $3 billion, 46-month financial support package signed in December, Egypt promised the International Monetary Fund it would roll back the state’s involvement in the economy and allow private companies a much greater role.
The stock exchange said on Sunday the sale of 162.2 million shares of Telecom Egypt had been executed for a total 3.75 billion pounds. The finance ministry said the shares were sold at 23.11 pounds each in a subscription that was 3.11 times oversubscribed.
The second batch represents 5% of the shares totaling 8,535,358 shares, the ministry said.
The second offering, dedicated to staffers of Telecom Egypt, will start as of Sunday till May 25.
Staffers are allowed to register their buying orders under the OPR system. In case staffers did not buy the offered shares, the shareholder could offer them to investors.
By the two batches, the total amount of offered shares are 170,707,160 shares, representing 10 percent of Telecom Egypt stocks and 12.5 percent of shares of the Finance Ministry.
Prior to the deal, the Egyptian government held 80 percent of the telecommunications company’s equity.
The two-part sale will reduce the government’s stake in Telecom Egypt to 70% from the previous 80%, with the other 20% floating on the Egyptian Exchange.
Two local investment banks, CI Capital and Ahly Pharos, were managing the sale, according to market sources. The ministry statement did not say what portion of the shares were sold to local buyers as opposed to non-Egyptians. Egypt has been looking to raise foreign currency through its asset sales.
Al Mal newspaper said on Thursday that Moon Capital, based in New York, was among the bidders.