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A USD 250 million deal in the offing🗼

ETEL to rake in up to USD 250 million from tower sales

Telecom Egypt (ETEL) expects to bring in between USD 200-250 million from the sale of 2,500 telecommunication towers, with an offer for the deal expected to be sealed by Q1 2025, Asharq Business reported.

We knew a deal of this sort was coming:

Back in June, we wrote that the Saudi Public Investment Fund’s telecom infrastructure subsidiary Tawal was keen on purchasing a number of telecom towers from Vodafone Egypt, which is 45% owned by ETEL. Vodafone wants to sell off 5000 of its 11000 towers.

This could help boost profits:

ETEL recorded a 5.6% YoY fall in net income during the first nine months of 2024, accumulating EGP 8.6 billion . The decline was driven by higher net financing costs caused by the devaluation of the EGP and higher interest rates during 9M.

The local telecom giant reported a 39.3% YoY surge in revenues to EGP 58.4 billion, however. This was due to a 46% YoY increase in Data revenues, which accounted for 45% of total top line growth.

General Silos' profits grow 57% over 5 months

The net profits of General Co for Silos & Storage (GSSC) increased by approximately 57% YoY during the 5 months ending in November 2024 to reach EGP 107.5 million.

Continued growth:

GSSC increased in its net profit from July 2023 to the end of June 2024, bringing in some EGP 206 million. This compares to EGP 141.5 million during the previous fiscal year.

Large dividends:

The company’s general assembly approved the distribution of EGP 70 million to shareholders last October, with 4 pounds per share. The dividends will be paid in two installments within three months from the date of the meeting.

Background

Founded in 1888, GSSC was listed on the Egyptian Stock Exchange in 1996. It is a subsidiary of the Egyptian Holding Company for Silos and Storage, which is managed by the Ministry of Supply.

The company specializes in the production, transport, trading, importation, exportation, storage, packaging, and distribution of various grains and food products.

What else is clapping?

Sidi Kerir Petrochemicals said it is targeting a net profit of EGP 1.644 billion in 2025, down from the EGP 1.91 billion it expects to report for 2024. Last month, the company — which saw a 4% YoY rise in income during 9M to EGP 1.88 billion — approved an EGP 1.93 billion investment budget for 2025. EGP 213.5 million will be channeled toward project financing.