Telecom Egypt signs $90m acquisition deal of MENA Cable company
CAIRO, May 21, 2018 (MENA) - Telecom Egypt (TE) announced that its 50 per cent owned subsidiary, the Egyptian International Submarine Cables Company (EISCC), has executed a sale and purchase agreement with Orascom Telecom Media and Technology Holding S.A.E (OTMT) for the acquisition of OTMT's shareholding of its subsidiary Middle East and North Africa Submarine Cable (MENA) for a total value of $90 million.
The transaction is to be concluded in 60 days, after the fulfillment of all conditions that have previously been approved.
In statements on Monday Telecom Egypt Managing Director and Chief Executive Officer Ahmed el Beheiry said the decision to acquire MENA Cable is one of the most important steps towards implementing the company's strategic plan to ensure the sustainability of submarine cable revenues and reinforce the contribution of the revenue stream in US dollars.
The new cable will add to Telecom Egypt's network of submarine cables fortifying TE's network offering to the maximum number of routes between India and Europe as well as add a new gateway to Europe through Italy.
Telecom Egypt had previously announced on 10 May 2018 that its board of directors approved the acquisition MENA Cable by its subsidiary EISCC with a total enterprise value of $90 million to be financed through a shareholder loan from Telecom Egypt.
The decision to acquire MENA Cable comes in line with Telecom Egypt's strategy to achieve a short-term return from this investment and preserve the revenue stream of the submarine cable systems.
MENA Cable is licensed in Egypt and Italy to operate a submarine telecommunications system connecting Europe to the Middle East and South East Asia.