Telecom Egypt Approves Acquisition Of MENA Cable From Orascom TMT, Long-Term Credit Facilities
May 10, 2018
Telecom Egypt said that its board has approved two strategic decisions to increase its return on investment, and provide the liquidity to facilitate the implementation of its business plan. The board approved the acquisition of MENA Cable (Middle East and North Africa Submarine Cable) by 50 percent-owned subsidiary Egyptian International Submarine Cables Company, with a total enterprise value of USD 90 million to be financed through a shareholder loan from Telecom Egypt. MENA Cable is a subsidiary of Orascom Telecom Media and Technology Holding.
The board also approved obtaining credit facilities in US dollars with the aim of converting short-term US dollar-denominated overdrafts into longer-term loans, to enable the company to repay instalments in line with its cash flow generation. It is also intended to provide flexibility to finance its working capital needs and avail a lower interest financing option to invest in its 4G network.
The board approved the five-year syndicated loan of up to USD 500 million arranged by Mashreq Bank and First Abu Dhabi Bank, renewable twelve-month short-term credit facility provided by Abu Dhabi Islamic Bank and African Bank for Import and Export with a maximum of USD 200 million. TE will also obtain four year vendor finance agreement with Huawei with a limit of USD 20 and a grace period of two years.