The effort to private Telecom Egypt, the country’s national telecom company, progressed one step further last week, as Merrill Lynch and Commercial International Bank were provided a mandate to sell a share of the corporation to a strategic partner.
It has been decided to sell between 20-34 percent to the strategic investor, Reuters reported. Quoting the company’s investor relations manager, the intent is to find a suitable investor within the next six months, the news agency added.
Telecom Egypt’s original intention was to sell the stake in the form through an initial public offering, already in 2000, but that plan was shelved at the end of last year after the dramatic falls that took place on the world’s stock exchanges.
IT is now believed that if a stake in the firm is sold to a high-profile strategic investor, an IPO held toward the end of 2001 is more likely to be successful. — (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com )