REG - Telecom Egypt S.A.E - TE Approves Helios’ Offer for RDH

Telecom Egypt Co SAEAnnouncement

08/09/2025 07:00

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RNS Number : 3034Y  Telecom Egypt S.A.E  07 September 2025

Telecom Egypt Grants Preliminary Approval to Helios Investment's Binding Offer
for Partnership in Regional Data Hub to Expand Business

7 September 2025: Telecom Egypt today announced that its Board of Directors,
in its meeting held on 3 September 2025, has granted its preliminary approval
of the binding offer submitted by Helios Investments to acquire a stake
ranging from 75% to 80% in a subsidiary that will own the Regional Data Hub
(RDH). The subsidiary owned by the two parties will engage in the business of
data center development in Egypt, following the restructuring of said assets
in a subsidiary, in accordance with the relevant procedures to be followed in
that respect. Upon completion, Helios Investments' share shall range from
approximately 75% to 80% stake in the subsidiary, while Telecom Egypt will
retain approximately a 20% to 25% stake. The Board further approved signing
the term sheets relating to the terms and conditions of the transaction and
approved the appointment of an independent financial advisor, registered with
the Financial Regulatory Authority, to determine the fair value of RDH.

The binding offer submitted by Helios Investments comprises an aggregate
valuation of 100% of RDH on a debt-free, cash-free basis of USD 230 million
and could reach up to USD 260 million, subject to the satisfaction of certain
pre-agreed KPIs, as will be outlined in the definitive agreements.

Completion of the transaction will be subject to the agreement on the terms
and conditions of the final definitive agreements and its execution; the
completion of the restructuring of the RDH within a subsidiary of Telecom
Egypt; the agreement on the terms and conditions of ancillary transaction
documentation; the satisfaction of a number of conditions precedents,
including but not limited to, the completion of the fair value report to be
prepared by the appointed independent financial advisor, the corporate
approvals of the Company, and the satisfaction of all the requirements of
Article 43 (bis) of the Listing and Delisting Rules of the Egyptian Exchange,
and the receipt of all necessary approvals from the relevant regulatory
authorities.

EFG Hermes is acting as the sole M&A financial advisor on the transaction.
ADSERO-Ragy Soliman & Partners, and A&O Shearman are acting as the
legal advisors for Telecom Egypt.

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About Telecom Egypt

 

Telecom Egypt is a total telecom services provider in Egypt that provides a
wide array of services to a diverse customer base. Serving individuals,
communities, SOHOs, SMEs and large enterprises, Telecom Egypt offers a
comprehensive, innovative, and diversified portfolio of services, ranging from
fixed and mobile voice to essential data solutions crucial in today's digital
landscape. These services also include high-speed internet, smart solutions,
data center facilities, and cloud computing solutions tailored for businesses.

With a rich heritage of about 170 years, Telecom Egypt continues to lead the
Egyptian telecom market by providing cutting-edge technology, robust
infrastructure, and an extensive network of subsea cables to meet the needs of
its enterprise and consumer clientele. The company's pivotal role in Egypt's
telecommunications landscape is underscored by its expansive network coverage,
broad service range, and dedication to fostering innovation. Aside from its
mobile operation "WE", Telecom Egypt holds a significant 45% ownership stake
in Vodafone Egypt. Telecom Egypt's shares and GDRs (Ticker: ETEL.CA; TEEG.LN)
are traded on the Egyptian Exchange and the London Stock Exchange.

 

For more information, contact:

The investor relations team

Email: investor.relations@te.eg (mailto:investor.relations@te.eg)

 

About Helios Investment Partners

 

Established in 2004, Helios Investment Partners is the largest Africa-focused
private investment firm, with a record that spans creating start-ups to
providing expanding companies with growth capital and expertise. The firm is
led and managed by a predominantly African team based in London, Paris, Lagos,
and Nairobi, with the language skills and cultural affinity to engage with
local entrepreneurs, managers, and intermediaries on the continent. Helios
leverages its local and global networks to create attractive proprietary
investment opportunities, with an emphasis on building market leaders in core
economic sectors and driving performance through a highly engaged approach to
portfolio operations. The firm's unique combination of a deep knowledge of the
African operating environment, a singular commitment to the region, and a
proven capability to manage complexity is reflected in its diverse portfolio
of growing, market-leading businesses and its position as a partner of choice
in Africa. Helios is the second mainstream private equity firm globally, and
the largest emerging markets-focused private equity firm, to receive B Corp
certification. B Corp status recognizes the firm's long-standing commitment to
sustainability and responsible business practices.

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