Telecom Egypt Cuts Dividend In Favour Of Submarine Cable Investment
March 28, 2018
Telecom Egypt announced that in light of a new investment opportunity in the submarine cable industry, the board determined to reduce the earlier proposed dividend for FY 2017 to EGP 0.25 from EGP 1 per share.
In a statement, TE said the board’s decision to amend the dividend proposal comes in light of the company’s decision to preserve the revenue stream of the cable systems segment; avail of short-term financing for the potential investment opportunity without inflating the company’s debt position; and achieve a short-term return on the potential investment opportunity.
CEO Ahmed El Beheiry said the operator intends to maintain its long-standing dividend policy to its shareholders in FY 2018 and beyond. Such dividend policy, he said, aims to provide investors with a continuous stream of annual dividends, while balancing dividend distribution and the reinvestment of its cash flows in its capex programme, which is viewed as the key driver for inducing future growth. EL Beheiry added that further disclosure will be made regarding all details related to the investment opportunity once the commercial arrangements have been concluded.