Telecom Egypt Decides Against Treasury Stocks Purchase – Statement

The state telephone company Telecom Egypt decided against the purchase of treasury stocks, it announced in a statement to the stock exchange on Thursday.

The company’s board of directors met on Wednesday, the statement read, when they reviewed a preposition to buy treasury stocks due to the decrease in the company’s share price below nominal value.

The company said its investment in the coming period would be directed toward infrastructure projects.

Egypt’s prime minister appointed on May 27 seven new government representatives to the board of Telecom Egypt.

The board of directors then chose Osama Yasin as new chief executive officer and Mohamed Salem as new chairman last week.

Egypt’s government owns 80 percent of Telecom Egypt, which has monopoly over Egypt’s land line services.

The government approved last September issuing a unified license for all telecommunication companies, which allows all companies to provide both land line and mobile services, in addition to internet services.

Telecom Egypt’s net profit had declined by 31.3 percent last year. The company is pursuing the acquisition of a license to provide mobile services, as per the new legislation.

Source : Aswat Masriya