LONDON (Dow Jones) – Telecom Egypt wants her Joint venture with the British Vodafone Group take over completely. The Egyptian telecom company had informal talks about a Vodafone’s acquisition of controlling interest in Vodafone Egypt Telecommunications Date Co said people familiar with the matter on Friday.
The London Vodafone Group plc holds 55% stake in the company, while the state Telecom Egypt SAE is involved with 45%. More Parties are not involved, could be heard. Vodafone and Telecom Egypt rejected an opinion.
The Telecom Egypt – the only fixed line provider in the country – had in Announced in March, increasing its presence in the mobile market want. CEO Tarek Tantawy said at the time, he was considering the acquisition an integrated telecom company. In addition, the Group could may offer for a fourth mobile license, if a another auction coming.
Vodafone is in turn has long been under pressure of the market, its strategy with regard to minority interests in the U.S., France, China, South Africa and Egypt clarify.
The Telecom Egypt Vodafone’s share could be for about 3 billion GBP. This corresponds to six times earnings before interest, taxes, depreciation and amortization (EBITDA), wrote Sanford Bernstein analyst- Robin hive in a study. A sale is likely, for Vodafone CEO Victorio Colao had "made it clear that the core business in Europe, in Africa south of the Sahara and lay in India. Egypt is not among them. "
The Financial Collins Stewart said it would a rationalization of the Vodafone portfolio through a "Welcome early" sale. According to another London Analysts expected revenue from a sale of the Balance sheet of British cushion addition.
In the wake of price wars between mobile operators in Egypt shrinking margins and sales by the manufacturer. In January, had 73% of the population of a cell phone, such as data of the Egyptian Communication and Information Ministry show. The number of Mobile subscribers totaled 55.85 million. This is an increase of 32% in Compared to the prior year period.
Web sites: www.vodafone.com www.telecomegypt.com.eg - By Molly Neal, Dow Jones Newswires; +49 (0) 69 29 725 103, unternehmen.de @ dowjones.com DJG / DJN / sha / kla Visit our website http://www.dowjones.de
(END) Dow Jones Newswires
May 21, 2010 08:55 ET (12:55 GMT)
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