Amr El Alfy said the deal’s pricing takes into account fluctuations in the currency exchange rate
Amr Al-Alfi, head of research at Prime Holding, said that the Egyptian government’s plans to sell a stake in Telecom Egypt would be a long-term acquisition, not in the Egyptian Stock Exchange.
Al-Alfi added, in an interview with Al-Arabiya, that the long-term or strategic investor focuses on investing in the long term, and therefore takes into account the change in the currency price.
He pointed out that the pricing of the deal takes into account fluctuations in the exchange rate of the pound against the dollar, so the changes taking place now will not be a reason to delay the conclusion of the deal.
Al-Alfi stated that the fluctuation of the exchange rate will not prevent the execution of deals in the Egyptian market, as happened in 2022.
As for the fair price of Telecom Egypt, Alfy said that the share price is considered low and less than the fair value because since the share price was listed in 2005, the share price was 14 pounds, and the price of the dollar at that time was very low, while now the stock is trading at 26 pounds despite Dollar rise.
El Alfy added that Prime’s fair price valuation of Telecom Egypt’s share amounts to 47 pounds, taking into account the implicit evaluation of the “Voafone Egypt” deal, which was concluded recently, by transferring 55% of “Vodafone Egypt” to “Vodacom” of South Africa, at a value of approximately 60 billion pounds. .
He continued, “After this deal, the total value of Vodafone Egypt will reach EGP 109 billion.”
He stated that the price of “Telecom Egypt” is currently trading between 44 billion and 45 billion pounds only, and therefore there is a very low value in evaluating the company’s shares.
He revealed that selling a 10% or 20% stake in Telecom Egypt would be more logical for the strategic investor rather than the individual investors.
