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'SAMENA Daily' - News

Telecom Egypt in talks to sell nearly 90% of tower portfolio

The efforts of Telecom Egypt Company (CASE:ETEL) the majority state-owned integrated telecom operator, to sell close to 90% of its tower portfolio could strengthen its market position as cash generated through tower sales could finance new strategic investments, BMI reported in a research note. The potential deal set to close in the first quarter (January-March) of 2024 is estimated to be worth $250mn. The front-runners in the race to acquire the operator's assets are three tower companies: Helios Towers, IHS Towers and Mobi Tower. Upon a completed sale, BMI expects TE's free cash flow position to improve, supporting the operator's rollout of advanced connectivity, such as the offering of 5G services.

The sale of towers is also likely to improve TE's quality of service, assisting growth in the total number of mobile phone subscribers, which BMI projects will increase from 103.3mn in 2023 to 129.1mn in 2032. TE is the smallest of four mobile phone operators in Egypt with 12.5mn subscribers in the third quarter (July-September) of 2023. To further support growth, especially towards rolling out 5G technology, TE is reportedly talking to tower companies about selling and leasing back 2,500 of its 2,800 towers.



Source: https://www.marketscreener.com/quote/stock/TELECOM-EGYPT-COMPANY-6497886/news/Telecom-Egypt-in-Talks-to-Sell-Nearly-90-of-Tower-Portfolio-45704545/

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