The Egyptian Telecom Board of Directors has approved a 50% stake in its subsidiary, Egypt International Submarine Cable Company (EISCC), for $15 million.
EISCC recently completed the acquisition of Middle East and North Africa submarine cables (MENA cable) from Oscom Telecom.
In early August, Egypt Telecom also announced the signing of a memorandum of understanding with Batty Telecom. According to the memorandum, Egypt Telecom will bundle the assets of its international seabed network with the assets of the MENA cable.
The transaction is expected to be completed and will enable Egypt Telecom to recover its full investment in the MENA cable.
Egypt Telecom believes that the decision to acquire the remainder of the EISCC has multiple financial advantages, including full integration of the profitability of the MENA cable in the Batty Telecom transaction; thanks to the new structure, immediate savings of Rs 10 million; during the life of the cable (minimum Within 15 years) the long-term gains can be confirmed.
Ahmed El Beheiry, Managing Director and CEO of Egypt Telecom, said: "Since the beginning of this year, the management has been making unremitting efforts to secure revenues from its international submarine cable network and has announced to investors the short-term return expected of the acquisition of MENA cable. Since then, we have reported several milestones in the plan, including the acquisition of the MENA cable and the signing of a memorandum of understanding to recover our investment. This announcement is very important as it will fully integrate assets and expected benefits throughout their lifecycle. The completion of the transaction marks the second wholly-owned submarine cable owned by Egypt Telecom."