Telecom Egypt Said to Seek Advisers for Sale of Vodafone Stake

Telecom Egypt plans to hire financial advisers for the potential sale of a 45 percent stake in Vodafone Group Plc (VOD)’s local unit, a company official said.

The monopoly fixed-line phone company, majority-owned by the government, has sent requests for proposals to local and international banks seeking to value the unit, the official said, asking not to be identified as the information is private. Banks will also help identify potential buyers for the stake, a second person said, also asking not to be identified.

Telecom Egypt will sell its holding in Vodafone Egypt by the end of 2015, the government said in September. Officials have also approved the issuance of a license that allows Telecom Egypt to become the country’s fourth mobile services provider and permits the local units of Vodafone, Orange SA (ORA) and Emirates Telecommunications Corp. (ETISALAT) to sell land lines.

Vodafone owns 55 percent of its local unit, with Telecom Egypt holding the remainder. The majority shareholder said in March it’s considering filing for international arbitration if the new license gives an unfair advantage to Telecom Egypt or creates a conflict of interest.

Telecom Egypt shares have fallen 7.2 percent this year, underperforming the broader Egyptian benchmark which has risen 37 percent during the same period.

Vodafone spokesman Ben Padovan declined to comment.

Source: Bloomberg