OTMT stud­ies in­vest­ment op­por­tu­ni­ties as it quits In­er­tia takeover deal

Com­pany mulls ex­pan­sion in Egypt to boost rev­enues

The Daily News Egypt - - Stock Market -

Oras­com Tele­com Me­dia and Tech­nol­ogy Hold­ing (OTMT) is cur­rently study­ing new in­vest­ment op­por­tu­ni­ties af­ter it an­nounced that its ne­go­ti­a­tions with In­er­tia for En­gi­neer­ing and Trad­ing over the ac­qui­si­tion of a 51% stake in the com­pany have been sus­pended, a se­nior com­pany of­fi­cial told Daily News Egypt.

“We are cur­rently work­ing on some in­vest­ment op­por­tu­ni­ties af­ter the deal of In­er­tia was can­celled,” the of­fi­cial said.

In mid-April, the com­pany said that its ne­go­ti­a­tions with In­er­tia for En­gi­neer­ing and Trad­ing over the ac­qui­si­tion have been sus­pended.

“The talks have been sus­pended due to dif­fer­ent rea­sons, in­clud­ing our new pol­icy to eval­u­ate ev­ery in­vest­ment op­por­tu­nity we de­cide to take,” the source added, com­ment­ing on rea­sons to quit the deal.

The two com­pa­nies did not reach an agree­ment and, there­fore, de­cided to end talks, OTMT said in a bourse state­ment.

The Egyp­tian Ex­change-listed com­pany’s board has ap­proved the for­ma­tion of an al­liance with In­er­tia to seek ten­ders put out by Egypt’s New Ur­ban Com­mu­ni­ties Author­ity.

In De­cem­ber 2017, OTMT’s board pre­lim­i­nar­ily ap­proved the ac­qui­si­tion of a 51% stake of In­er­tia for En­gi­neer­ing and Trad­ing.

In­er­tia was es­tab­lished by youth in­vestors in 2007 and has a land port­fo­lio of 6.5m sqm.

OTMT’s board had agreed to sell a 7% stake in Bel­tone Fi­nan­cial Hold­ing to the com­pany’s main share­holder, in or­der to fi­nance the In­er­tia deal.

Last month, the com­pany said that it will sell its shares in MENA Sub­ma­rine Ca­ble for $90m.

No­tably, OTMT holds a 99.99% stake in MENA Sub­ma­rine Ca­ble.

The com­pany aims at fi­nal­is­ing the devel­op­ment of the Sphinx and the Great Pyra­mids of Giza’s Sound and Light Theatre by the end of 2018.

On 21 Oc­to­ber, OTMT’s board agreed to es­tab­lish an Egyp­tian joint­stock com­pany with the con­tri­bu­tion of 124.2m shares for per­form­ing, de­sign­ing,and man­ag­ing sound and light shows.

The OTMT’s cap­i­tal stands at around EGP 2.2bn di­vided over 5.2bn shares at a nom­i­nal value of EGP 0.42 per share.

The com­pany recorded a net loss in Q3 2017 at EGP 128.4m, com­pared to a loss of EGP 54.2m in Q3 2016.

Mean­while, the com­pany’s op­er­at­ing rev­enue stood at EGP 358.9m, up from EGP 122.6m in the cor­re­spond­ing quar­ter last year.

For the first nine months of 2017, OTMT achieved a net profit of EGP 239.9m com­pared to a net loss of EGP 38.7m a year ago.

The com­pany said that its ne­go­ti­a­tions with In­er­tia for En­gi­neer­ing and Trad­ing over the ac­qui­si­tion have been sus­pended

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