Cairo – Mubasher: Telecom Egypt (TE) on Monday announced it has concluded the acquisition of Middle East and North Africa Submarine Cable (MENA Cable) from Orascom Investment Holding (OIH) through its subsidiary Egyptian International Submarine Cable Company (EISCC) at a total value of $90 million.
The transaction value will be divided into $40 million as the equity value of MENA Cable and $50 million as its outstanding debt, TE said in a statement.
EFG Hermes has implemented the transaction on TE’s side, according to the statement.
“The decision to acquire MENA Cable is a result of our vision to achieve a short-term return from this transaction capitalizing on the growing data demand from India,” managing director and CEO of TE Ahmed El Beheiry commented.
In August, TE revealed it entered a strategic partnership with India’s market leader Bharti Airtel for global submarine cable systems.
The deal will allow the Indian telecom firm the indefeasible right of use (IRU) on Middle East North Africa Submarine Cable (MENA Cable) and TE North Cable Systems.
The New Delhi-based company will also obtain large capacities on a long-term basis on two new state-of-the-art cable systems, SMW5 & AAE1.
