Telecom Egypt said that Egyptian International Submarine Cables Company (EISCC), its 50% owned subsidiary, has agreed to purchase Orascom Telecom Media and Technology (OTMT) Holding S.A.E’s shareholding of its subsidiary Middle East and North Africa Submarine Cable (MENA) for a total of $90 million. The transaction should be complete in 60 days, subject to the fulfillment of customary conditions.
Earlier this month, the company announced that its board of directors approved the MENA Cable acquisition by EISCC, with the deal financed through a shareholder loan from Telecom Egypt. According to the company, the MENA Cable acquisition supports its strategy to attain a short-term return from this investment, as well as maintain the undersea cable systems’ revenue stream.
MENA Cable is a carrier neutral cable operator with a license in Egypt and Italy to operate a submarine telecommunications system that connects Europe to the Middle East and South East Asia (see “Alcatel-Lucent wins Mediterranean submarine cable contract” and “Infinera upgrades MENA submarine network”).
“We are pleased to have concluded the Sale and Purchase Agreement (SPA) with OTMT,” said Ahmed El Beheiry, managing director and CEO. “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.”
In 2016, Telecom Egypt deployed optical mesh network capabilities across its terrestrial and submarine network infrastructure (see “Telecom Egypt deploys terrestrial, submarine optical mesh network”). The company uses its home country's access to the Red Sea, as well as the Mediterranean Sea, to provide a wide range of international telecommunications services.
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