Telecom Egypt has announced that its 50% subsidiary, the Egyptian International Submarine Cables Company (EISCC), has completed an agreement with Orascom Telecom Media and Technology Holding (OTMT) for the purchase of OTMT’s shareholding in Middle East and North Africa Submarine Cable System (MENA-SCS) for a total value of $90m. The transaction aims to be concluded in 60 days, after the fulfillment of all conditions.
Telecom Egypt had said on 10 May that its board of directors approved the acquisition, to be financed through a shareholder loan from Telecom Egypt. The EISCC’s financial advisers included KPMG and First Capital Financial Advisory, while Al Tamimi & Co and ALC Law Office were the legal advisers and Metel ICT the technical adviser.
The decision to acquire MENA-SCS is part of Telecom Egypt’s strategy to achieve a short-term return from this investment and preserve the revenue stream of the submarine cable systems. MENA-SCS is licensed in Egypt and Italy to operate a submarine telecommunications system connecting Europe to the Middle East and Southeast Asia. The new cable system will fortify 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.
Ahmed El Beheiry, managing director and CEO of TE, said that the acquisition of MENA Cable is an important step in the company’s strategy that will enhance the company’s marine cable business and raise its US dollar-denominated revenues.