Telecom Egypt’s subsidiary, Egyptian International Submarine Cables Company (EISCC), has signed a sale and purchase agreement with Orascom Telecom Media and Technology (OTMT) for the purchase of its shareholding in the Middle East and North Africa Submarine Cable (MENA).
The sales and purchase agreement has a total value of USD 90 million, the company noted.
The transaction aims to be concluded in 60 days, after the fulfillment of all conditions precedents.
Telecom Egypt had previously announced on May 10, 2018 that its board of directors approved the acquisition by its subsidiary EISCC with a total enterprise value of USD 90 million to be financed through a shareholder loan from Telecom Egypt.
MENA Cable is licensed in Egypt and Italy to operate a submarine telecommunications system connecting Europe to the Middle East and South East Asia.
Ahmed El Beheiry, managing director and chief executive officer, said: “We are pleased to have concluded the SPA with OTMT. As earlier communicated, the decision to acquire MENA Cable is one of the most important steps towards implementing the company’s strategic plan to ensure the sustainability of submarine cable revenues and reinforce the contribution of the USD revenue stream. The new cable will add to Telecom Egypt’s network of submarine cables fortifying TE’s network offering to the maximum number of routes between India and Europe as well as add a new gateway to Europe through Italy.”