(Bloomberg) — Egypt sold a 9.5% stake in state-run Telecom Egypt Co., raising more than 3.7 billion Egyptian pounds ($121 million) as a signal to investors that the country is serious about is implementing a far-reaching economic reform programme.
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The government has sold 162 million shares in the telecommunications company, equivalent to a stake of about 9.5% in the company, according to a filing with the Egyptian stock exchange. According to a separate filing, the shares were priced at 23.11 Egyptian pounds each. Egypt plans to offer another 0.5% to bribe employees of the company.
The offer, discussed in March, represents an important step in the government’s plan to sell off state assets in an effort to raise much-needed cash. Officials had prepared a list of 32 companies, including several banks and two military-affiliated companies, that were destined for sale. Little progress had been made, raising fears that the country would delay progress on the program.
The push is part of a wider effort to revive Egypt’s struggling economy, which has seen the currency devalued three times since March 2022 – a move that helped secure a $3 billion program of the International Monetary Fund.
Bookbuilding for the offering of Telecom Egypt shares, in which the government held an 80% stake, began late last week. Officials marketed the price range of the shares from £22.22 to £27.16.
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