EISCC acquires OTMT’s shares of MENA subsea cable for $90m
24 May 2018 | Jason McGee-Abe
Egyptian International Submarine Cables Company (EISCC) has agreed to purchase Orascom Telecom Media and Technology’s (OTMT’s) shares of its subsidiary MENA subsea cable for $90 million.
EISCC is a Telecom Egypt’s 50%-owned subsidiary and it previously announced on 10 May 2018 that its board of directors approved the acquisition of the Middle East and North Africa Submarine Cable (MENA), by its subsidiary EISCC, with a total enterprise value of $90 million to be financed through a shareholder loan from Telecom Egypt.
“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,” said Ahmed El Beheiry, managing director and chief executive officer of Telecom Egypt.
“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.
The decision to acquire MENA Cable is in line with Telecom Egypt’s strategy to achieve a short-term return from this investment and to preserve the revenue stream of the submarine cable systems.
MENA Cable is licensed in Egypt and Italy to operate a submarine telecommunications system connecting Europe to the Middle East and South East Asia.
The sale and purchase agreement (SPA) states that the transaction aims to be concluded in 60 days, after the fulfilment of all conditions precedents.