• 09:45
  • Wednesday ,16 May 2018

TE board of directors approves MENA Submarine Cable Systems acquisition




Wednesday ,16 May 2018

TE board of directors approves MENA Submarine Cable Systems acquisition

The board of directors of Telecom Egypt (TE) approved the acquisition of MENA Submarine Cable Systems, in line with the company s strategy to expand in the field of submarine cables.

MENA Submarine Cable Systems will be a part of TE s network, which will connect a large swathe of the world from the east to the west, as it will extend from India to Italy, and will pass through Egypt. This will support the position of TE as one of the most important cable operators in the Middle East. This agreement will be concluded after obtaining approvals from the concerned regulatory authorities.
Ahmed El-Beheiry, the company s CEO and managing director, said that the company approved the acquisition because it focuses on a wholesale business concept, in order to secure continued incomes, expand its activities, and become one of the main integrated operators across the Middle East.
TE announced in late March that there was a potential investment opportunity in the field of submarine cables, which made it reduce the proposed value of shareholders  distributions in 2017 by nearly EGP 1.3bn ($74m).
Orascom Telecom Media and Technology Holding (OTMT) announced in March that it would sell its shares in MENA Submarine Cable Systems for $90m.
Orascom s owns about 99.99% of MENA Submarine Cable Systems. The capital of OTMT is estimated to be around EGP 2.2b,ndistributed across 5.2bn shares, with a nominal value of 42 piastres per share.