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 Egypts EISCC buys MENA-SCS for $90m
By-dailynewsegypt
Technology
00:05
Tuesday ,22 May 2018
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.