Arab Finance: Telecom Egypt's (ETEL) board of directors has decided not to proceed with a proposed transaction to sell a 75% to 80% stake in a subsidiary that would own its Regional Data Center Hub (RDH) to Helios Investments after certain conditions required to complete the deal were not met,  as per a press release.

Approved at a board meeting held on July 15th, referring to a proposed transaction first disclosed on September 7th, 2025, the decision was made because certain conditions stipulated in the executed term sheet were not satisfied, including third-party conditions required to complete the transaction and ensure compliance with its terms.

The company remains committed to its strategy of carving out its data center assets and operations into a wholly owned subsidiary dedicated exclusively to the business.

The new entity will be staffed with specialized technical and commercial teams to support the development and expansion of the company's data center operations and accelerate growth as demand for data center services rises in Egypt and global opportunities expand.

Telecom Egypt noted that it continues to provide and expand its data center services across Egypt, strengthening its position in the sector while seeking to maximize shareholder value and protect customers' interests.

Moreover, the decision to terminate the proposed transaction will have no financial or operational impact on its business and will not affect the rights of any existing parties.

It is noteworthy that Telecom Egypt logged EGP 3.572 billion in consolidated net profits attributable to the holding company for the first quarter (Q1) of 2026, down by 23.11% year on year (YoY) from EGP 4.645 billion.

Telecom Egypt is the first integrated telecom operator in Egypt and is one of the region’s largest operators of subsea cables. It operates in the sectors of communications, marine cables, infrastructure, internet services, and outsourcing services. It offers a range of fixed-line and retail telecommunications services, as well as wholesale telecommunications services.