Sources connected to the government’s IPO programme have said that the government aims to earn $2bn from the sale of either Telecom Egypt’s stake in Vodafone Egypt or the Beni Suef power station before the end of this month.
The government has so far raised about $175m from the IPO programme by selling shares in Pachin at a value of $25m, and 10% of Telecom Egypt at a value of $150m last month, but most of these earnings were in Egyptian pounds.
The sources added to Daily News Egypt that Telecom Egypt, which is 70% owned by the government, intends to sell all its shares in Vodafone Egypt, amounting to about 45%.
The sources added that there are currently negotiations with the Qatar Investment Authority about the evaluation, and expectations indicate that it amounts to about $3bn for the entire company, but the final evaluation has not yet been settled.
EFG Hermes plays the role of the financial advisor to Telecom Egypt in the deal, and the office of Adsero Ragy Soliman and Partners for Legal Consultations plays the role of the company’s legal advisor, according to the sources.
In a related context, the sources said that the alternative plan would be to sell the Siemens station, especially after renewed efforts by Edra Holding and Actis to buy the station.
Sources told Daily News Egypt that the Sovereign Fund intends to keep about 30% of the station, while the companies Actis and Edra aim to acquire more than 51% of the station, explaining that they are in the process of sending a new letter of intent that includes the acquisition offer.
The sources added that 85% of the cost of the station, amounting to about €2bn, was financed through loans, and that the bulk of the proceeds will be directed to repaying those loans, explaining that the implementation of the deal is linked to obtaining the approval of the lenders.
The Beni Suef power station is one of three stations built by the German company Siemens with a total capacity of 14.4 gigawatts, and was inaugurated in mid-2018.
The government is racing against time to provide dollar proceeds from the sale of assets, in addition to complying with the conditions of the International Monetary Fund by increasing the role of the private sector in the economy.