Telecom Egypt (TE) [ETEL.CA] is said to have offered to acquire Orascom Telecom Media and Technology’s (OTMT) [OTMT.CA] MENA Submarine Cable System (MENA SCS), Al Borsa quoted anonymous sources as saying. The offer comes after the failure of Bharti Airtel’s attempt to acquire 100% of MENA SCS for USD90mn. TE plans to merge MENA SCS with its existing submarine cables company, TE North, as part of its plan to increase its investments in the submarine cable industry, the source added. On a separate note, TE is in talks with several banks to increase the preliminary USD-denominated tranche worth USD180mn within its EGP13bn loan, according to TE’s CEO, Ahmed El Beheiry.
 
OTMT: EGP0.75 as of 3 Dec. 2017, Rating: Sell, TP: EGP0.53/share, MCap: USD222mn, OTMT EY/OTMT.CA

Telecom Egypt: EGP13.46 as of 3 Dec. 2017, Rating: Buy, TP: EGP15.70/share, MCap: USD1,299mn, ETEL EY/ETEL.CA