Etisalat NOT mulling sale of stake in Egypt mobile start-up, papers say

27 Jul 2006

Etisalat of the UAE has denied that it will sell part of its stake in the consortium that won Egypt’s third mobile licence, according to the Khaleej Times, which published the original story earlier this week. The winning bid for the combined 2G and 3G operating concession is reportedly worth EGP16.7 billion (USD2.9 billion), almost eight times the minimum offer, and Etisalat expects to receive the concession next month, ahead of a planned launch in February 2007. Etisalat holds around 66% of the equity in the winning consortium, with the remainder split between domestic partners including Egypt Post, National Bank of Egypt and Commercial International Bank (Egypt). Etisalat spokesman Jaber Al Janahi reportedly told local reporters that the company was studying an option to sell between a 10% and 15% stake, but the company has now issued a formal statement denying any such intent. Chairman Mohammad Hassan Omran has instead said that whilst ‘the corporation is still receiving offers from companies interested in purchasing part of its share, [we do] not intend to sell at this point.’ Glad we got that cleared up, then.

Egypt, Etisalat UAE