ONTV Channel Sale; Another Safe-Exit Saga About Sawiris’ Family
The ‘Safe Exit’ is one of the major terms that can precisely describe the plans drawn up by Sawiris’ family for the current phase. Taking into consideration their recent investments, Sawiris’ family are gradually exiting the Egyptian market to escape from the drawbacks of the successive political incidents.
Naguib Sawiris; Eldest Son:
The safe-exit saga started after Naguib Sawiris had sold some of Orascom Telecom Media & Technology Holding (OTMT.CA)’s stakes in the Egyptian Company for Mobile Services (Mobinil) to France Telecom for EGP 6 billion.
He continued taking further exiting steps afterwards, when he sold some of his IT firms proceeded by seeking to buy stakes in Telecom Italia for $3.9 billion and to make expansions in South America markets through making acquisition deals in Brazil.
Moreover, Naguib is also targeting buying stakes in La Mancha Resources Inc. for $493 million ($3.5 per share). Naguib has recently bought French government’s stakes in Sudan’s Ariab Mining Co. becoming the major partner for the Sudanese government as he currently owns 40% of the company’s stakes worth $ one billion. The saga seems that it is coming to an end after Naguib had sold Wednesday ONTV channel to French-Tunisian media businessman Tarak Ben Ammar in a deal worth tens of millions of euros. Naguib’s sale of his channel sounds a clear message conveying that he has been facing a series of pressures.
Will the safe exit of the business tycoon’s family trigger the departure of further leading investment figures from the Egyptian market?
Notwithstanding the above-mentioned facts, Naguib had earlier this year described the safe exit rumors as “baseless” stressing his determination to continue his investments in the Egyptian market.
Experts: Govt’s Hasty Decrees Threaten Investment Exit From Egypt
Capital market experts and traders have attributed the Sawiris family’s decision to gradually lessen their financial investments in the Egyptian market to two major reasons. First, the market is currently lacking the factors and requirements to have successful investments in the country due to the successive incidents. Second, the current government is intending to adopt arbitrary decisions against Sawirirs’ family, for instance the Chairman of Orascom Construction Industries’ Nassef was in talks in regard to pay EGP 14 bln tax dues to the state.
The experts expected that the market will loss further successful investment figures, if the current situation witnesses no change and the government goes on taking hasty decisions which significantly affect the market.
