Egypt could delay Telecom share sale

by This email address is being protected from spam bots, you need Javascript enabled to view it on Monday, 22 December 2008

TELECOM DELAY: Egyptian government may delay sale of shares in Telecom Egypt, a minister said. (Getty Images)

The Egyptian government will probably delay beyond 2009 offering on the stock exchange a second tranche of shares in Telecom Egypt, the country's sole fixed-line operator, the communications minister said on Monday.

"There were plans that the government would offer an additional tranche of Telecom Egypt on the stock market... we were planning for this to happen in 2009, but all indications confirm that we will postpone this offering," said Tarek Kamel, minister of communications and information technology.

The minister, speaking at an investment conference in Cairo, refused to be drawn further on the timing, and said the decision would "depend on the circumstances".

Telecom Egypt's initial public offering (IPO), for 20 percent of the company, raised 5.132 billion Egyptian pounds ($930.3 million) in December 2005.

Kamel said that Telecom Egypt was committed to installing around 450,000 new landlines.

"The rate of new applications for fixed lines... rose from 30,000 to 40,000 in monthly applications to 700,000 applications in November," he said. Telecom Egypt has been advertising free installation for new landlines.

"The growth rates in November and December were satisfactory, and we forecast a continuation of growth in the coming period," Kamel said. (Reuters)

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