[Economics] Egypt offers to sell 10% of the government's stake in Telecom Egypt

[Guest High King Eslam]

Informed sources told Reuters today, Monday, that Egypt is about to put up 10% of its stake in Telecom Egypt, which is run by the state, for sale.

The government owns 80% of Telecom Egypt's shares, and the other 20% is traded on the Egyptian Stock Exchange.

The sources stated that “CI Capital” and “Al-Ahly Pharos” institutions are managing the sale.

The Egyptian government seeks to sell assets estimated at about $40 billion within 4 years, and to bridge an annual foreign exchange deficit estimated by the International Monetary Fund at about $17 billion.

The proposals identified by the Egyptian Prime Minister, Mostafa Madbouly, in a press conference last month, include 32 companies, an increase of 12 companies from the previously announced number, carrying out production and service work in 18 sectors.

The proposals come at a time when Moody's downgraded Egypt's credit rating, for the first time since 2013, from stable to negative, and from B2 to B3.

The Egyptian moves reflected the shift of supporters from the Gulf states from the policy of aid and deposits to acquiring majority stakes in existing government companies, or direct investments, with several guarantees to protect them.

Investors are also seeking reassurances that the government will reduce the dominance of state-run companies and loosen its grip on the currency, promises now tied to a bailout with the International Monetary Fund.

Source: The New Arab

https://www.i3lam-al3arab.com/مصر-تطرح-بيع-10-من-حصة-الحكومة-في-المصرية/