The proposed consolidation comes after the company received two separate acquisition offers for its tower portfolio, which were ultimately deemed undervalued.
Telecom Egypt is exploring a strategic merger of its mobile tower assets with those of two local network operators, aiming to form a unified entity for tower management that could attract international investment, according to informed sources speaking Al Borsa News.
The proposed consolidation comes after the company received two separate acquisition offers for its tower portfolio, which were ultimately deemed undervalued.
Instead, Telecom Egypt is weighing alternative approaches, with a merger emerging as the most viable path forward. The deal, if finalized, would likely follow a sale-and-leaseback model, where ownership is transferred but assets are leased for continued use—an arrangement that balances upfront capital inflow with long-term cost control.
Sources emphasized that the financial assessment of any deal will not be solely on the sale price but also on leaseback terms, which could significantly influence the company’s operating expenses in the coming years.
Egypt's telecom sector currently includes four key players: Vodafone Egypt, Orange Egypt, Etisalat Misr, and Telecom Egypt itself. The government holds roughly 70% of Telecom Egypt and owns a 45% stake in Vodafone Egypt.
In a related development, Telecom Egypt recently appointed Tamer El Mahdi as its new Managing Director and Chief Executive Officer (CEO), following the resignation of Mohamed Nasr from both his executive post and his board seat. The leadership change was approved by the board during its September 30 meeting and took effect immediately.
The company also accepted the resignations of Mohamed Al Fowey, Vice President and Chief Technical Officer, and Ahmed Hassan, Vice President and Chief Human Resources Officer. El Mahdi is expected to oversee the selection of their successors to ensure business continuity and drive the company’s next phase of strategic development.
Telecom Egypt has reported strong financial performance in the first half of 2025, with net profits soaring 62% to EGP 10.52 billion, up from EGP 6.51 billion in the same period of 2024. Revenues also surged to EGP 50.6 billion, compared to EGP 38 billion year-on-year.
Despite this growth, the company plans to reduce annual capital expenditures by approximately EGP 2 billion. Investments for 2026 are expected to range between EGP 20 and 22 billion, with a continued focus on keeping capital spending around 20% of total revenue.
