Commercial International Bank (CIB) – Egypt began talks with UK firm EATON with the aim of seizing the deal of selling telecom towers owned by The Egyptian Company for Mobile Services (Mobinil) seen finalized in the few coming months, according to sources.
The sources told Al Mal gazette that the UK firm agreed with global consultancy office Baker & McKenzie to carry out the deal.
Mobinil affirmed on Tuesday holding talks with some entities over the sale of a portion of its owned telecom towers.
The company added, in a statement to the stock market, said it has not taken any actual decisions in this regard.
The statement came in reply to the EGX inquiries about media reports that Orascom Telecom Media and Technology Holding (OTMT) is competing to buy Mobinil’s towers.
OTMT was cited on Monday as saying it is in fierce competition with a foreign firm with strong presence in booming markets to win Mobinil’s telecom towers deal put up several months ago.
Given the fact that the majority of telecom towers intended to be sold are based outside both Cairo and Alexandria provinces, the mobile phone operator seeks to sell the metal towers over multiple phases, according to sources. In an interview with Al Mal newspaper, the managing director of Mobinil, Yves Gauthier, said that his firm is about to announce the winning bidder, adding that among the competitors for the telecom towers deal is an Egyptian company. Some 20% of the total towers will be put up in the first stage in the next few months with investments of EGP 1.3bn, sources said. The sources told Al Mal that a British firm has entered into negotiations with a major bank to borrow EGP 650m to bid on Mobinil’s telecom towers. Meanwhile, OTMT’s board of directors has approved to construct, own and operate mass telecommunications networks, energy production, transportations means and logistic services as well as other services related to them, according to a statement by the company.