Cairo - Mubasher: Telecom Egypt (TE) has settled a number of legal disputes over the last two months, which is expected to positivelt affect tits financial performance.
TE’s stock is expected to go up by as much as 36%, supported by resolving the legal conflicts.
The company has settled a dispute with Etisalat-Egypt for $48 million, and with Orange for EGP 74 million.
The head of research in Mubasher Financial Services, Amr El-Alfy believes that TE’s settlements will support the company’s financial results during the fourth quarter of 2017.
Resolving the disputed helped the company avoid paying more for these companies, he noted.
El-Alfy believes that the fair value of the stock is currently near EGP 18.
Meanwhile, Mohamed El-Mesery of Pharos said that the agreements do not cut the risks, as it could affect the results of Q4-17.
On the other hand, TE said that the agreement with Orange will boost quarterly revenues by EGP 49 million.
El-Mesery expects a continued growth in revenues, at a slower rate, noting that the fair value stands at EGP 15.5 per share.
