Telecom Egypt Denies Plans to Sell 45% Stake in Local Vodafone Subsidiary:

Telecom Egypt has refuted reports that it is looking to sell its 45% stake in Vodafone's local subsidiary to Saudi Telecom.

The company issued a statement stating that the report in the Al Rainewspaper that it was looking to sell the stake was incorrect.

Despite the denial, the majority government owned landline operator saw its shares surge on expectation of the sale.

Telecom Egypt has been expected to consider a sale of its stake in Vodafone Egypt as part of its plans to launch its own MVNO, which would be a competitor to Vodafone in the country.

Telecom Egypt share price rises on possible Vodafone bid:

Telecom Egypt shares surged to their highest level since February after Vodafone expressed interest in buying the shares it does not already own in Vodafone Egypt, Bloomberg reports. Analysts told Bloomberg that the sale could raise about USD 2 billion for Telecom Egypt. Vodafone is ready to buy the 45 percent stake, an official at the company who sought anonymity said. Buying the share could end a conflict of interest that has arisen after Telecom Egypt applied for an integrated licence allowing it to offer mobile services. The Cairo-based company hasn't received a formal offer, an official said, declining to comment further.

Vodafone poised for Telecom Egypt buyout:

The Vodafone Group is ready to buy Telecom Egypt’s 45 per cent stake in Vodafone Egypt, according to a Bloomberg report.

Analysts at Naeem Brokerage, quoted by Bloomberg, reckon the sale could raise $2 billion for Telecom Egypt, which is 80 per cent owned by the state.

As well as boosting government coffers, a Telecom Egypt exit may well avert a conflict of interest for the country’s fixed-line monopoly holder.

Telecom Egypt has already applied for an integrated licence, a concession that allows operators – for the first time in Egypt – to offer fixed and mobile services under one licence.

Integrated licences would also open the door for Egypt’s three main mobile operators – Etisalat, Orange and Vodafone – to offer fixed-line services.