Egypt's premier appoints new government representatives in Telecom Egypt - statement

Wednesday 27-05-2015 02:16 PM
Egypt's premier appoints new government representatives in Telecom Egypt - statement

Egyptian women talking in mobile phones - Reuters


CAIRO, May 27 (Aswat Masriya) - Egypt's prime minister appointed on Wednesday seven new government representatives to the board of the state telephone company Telecom Egypt, a government statement read.

The board of directors is scheduled to meet later today to choose a new chairman and a new CEO, a statement from the ministry of communication and information technology read.

Egypt's stock market halted Telecom Egypt's trading earlier on Wednesday.

"The bourse's administration decided to halt Telecom Egypt's trading until a statement regarding an amendment to the formation of its board of directors arrives," Egypt's bourse said in a statement posted on its website.

The company's shares rose by 4.2 percent before its trading was halted today, Reuters reported.

The rise followed an announcement by Telecom Egypt that it is considering buying treasury stocks due to the decrease in the company's share price below nominal value.

The proposal was due to be discussed during Wednesday's board of directors' meeting, according to a statement from Telecom Egypt to the bourse.

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.

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