Telecom Egypt’s board of directors have granted preliminary approval of a binding offer from Helios Investments (Helios), a London-based private equity firm, to acquire a majority stake in a subsidiary that will own the Cairo Regional Data Hub (RDH).
According to the telco, the decision follows a meeting held on 3 September.
The deal offered by Helios is valued at $230 million, but could reach up to $260 million, subject to the satisfaction of certain pre-agreed key performance indicators. The agreement will see Telecom Egypt retain a 20% to 25% holding in the venture, with Helios owning the remainder.
Following the restructuring of assets in the subsidiary, the business will focus on datacentre development in Egypt.
RDH is a multi-phase datacentre campus, which plays a role supporting digital infrastructure for the region, connecting international data flows and supporting digital services such as cloud computing.
Helios’ portfolio includes a previous investment in iXAfrica (Kenya) and Maroc Datacenter (Morocco), and Helios Towers. In October 2023, Helios sold its 60% stake in Telkom Kenya to United Arab Emirates-based Infrastructure Corporation of Africa.
A Telecom Egypt statement on the Cairo Regional Data Hub deal notes: “Completion of the transaction will be subject to the agreement on the terms and conditions of the final definitive agreements and its execution, the completion of the restructuring of the RDH within a subsidiary of Telecom Egypt.”
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