Tele­com Egypt cuts div­i­dends on shares to EGP 0.25

Amend­ment pro­posed to pro­vide funds for in­creased in­vest­ment in sub­ma­rine ca­bles, says El Be­heiry

The Daily News Egypt - - News - By Mo­hamed Alaa Eldin

Tele­com Egypt (TE) in­tends to cut div­i­dends on shares to EGP 0.25, down from EGP 1 for the fis­cal year end­ing in De­cem­ber 2017, based on a de­ci­sion from the com­pany’s board of di­rec­tors.

The board of di­rec­tors’ res­o­lu­tion aims to amend the div­i­dend pro­posal to se­cure the com­pany’s fu­ture rev­enues from sub­ma­rine ca­ble busi­ness, pro­vid­ing the cash needed to fi­nance in­vest­ment op­por­tu­ni­ties in the short term with­out in­creas­ing the com­pany’s cur­rent debt, as well as achiev­ing short-term returns from this in­vest­ment op­por­tu­nity.

The com­pany in­tends to main­tain its long-term div­i­dend dis­tri­bu­tion pol­icy for its share­hold­ers in 2018 and be­yond, ac­cord­ing to Ahmed El Be­heiry, chief ex­ec­u­tive of Tele­com Egypt.

“TE aims to pro­vide share­hold­ers with an­nual div­i­dends with a bal­ance be­tween div­i­dends and rein­vest­ment of cash flows in the com­pany’s in­vest­ment spend­ing pro­gramme, which we see as the main driver of the com­pany’s fu­ture growth,” he added.

Mean­while, TE has an­nounced that it has iden­ti­fied po­ten­tial in­vest­ment op­por­tu­ni­ties in the field of ma­rine ca­bles, which will max­imise the com­pany’s rev­enues in the field of ma­rine ca­bles and en­sure the con­tin­ued flow of cur­rent rev­enues from this ac­tiv­ity.

El Be­heiry de­scribed the in­vest­ment op­por­tu­ni­ties that the com­pany has iden­ti­fied as “very im­por­tant,” and he as­sured that TE will con­tinue to se­cure the rev­enues of the sub­ma­rine ca­ble busi­ness.

He noted that the de­ci­sion to amend the pro­posed div­i­dend to pro­vide short-term fi­nanc­ing for this in­vest­ment op­por­tu­nity is in line with Tele­com Egypt’s pru­dent man­age­ment of cash flow pol­icy.

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