Through its Egypt Submarine Cable Company subsidiary (EISCC), Telecom Egypt has completed the acquisition of Middle East and North Africa Submarine Cable System (MENA SCS), a subsidiary of Orascom Investment Holding. The telecommunications operator announced it on September 17, 2018 on the Egyptian stock exchange.
MENA SCS was purchased for $ 90 million. Telecom Egypt explains that part of this amount, US $ 40 million, represents the equity value of MENA SCS and the rest the outstanding amount of its debt. EFG Hermes acted as a brokerage firm for the execution of the transaction for Telecom Egypt.
Ahmed el-Beheiry, chief executive of Telecom Egypt declared that the acquisition of MENA SCS will enable the operator to extend its national and international data capabilities to allow it to meet the growing demand for quality connectivity in the country and abroad.
Beheiry further declared, “The decision to acquire MENA Cable is a result of our vision to achieve a short-term return from this transaction, capitalizing on the growing data demand from India.”
In August, Telecom Egypt concluded with India’s Airtel Company a memorandum of understanding to strengthen cooperation in the maritime cable domain.
To recall, Telecom Egypt operates within the telecommunication services sector focusing on integrated telecommunication services.