Egypt : Telecom Egypt in talks to sell nearly 90% of its tower portfolio

Efforts by Telecom Egypt Company (CASE:ETEL), the majority state-owned integrated telecom operator, to sell nearly 90% of its tower portfolio could strengthen its market position, as cash generated from tower sales could finance new strategic investments, BMI reported in a note.

The potential transaction, expected to close in the first quarter (January-March) of 2024, is valued at $250 million. Three tower companies are leading the race to acquire the operator’s assets: Helios Towers, IHS Towers and Mobi Tower. Once the sale is completed, BMI expects TE’s free cash flow to improve, supporting the operator’s rollout of advanced connectivity, such as 5G service offerings.