TAKEstock: Show Me the Dividends
Better visibility post modified shareholders’ agreement; stock should at least be double its current market value
Telecom Egypt [ETEL]
set on 8 June 2021
Impact: POSITIVE | Degree: STRONG
Telecom Egypt [ETEL] is finally getting its money's worth from its 45% stake in Vodafone Egypt. Yesterday, ETEL and Vodafone Group [LSE: VOD] signed a modified shareholders’ agreement that defines their future relationship as the two strategic investors in Egypt's largest and most profitable mobile operator, Vodafone Egypt (VFE), come to terms with regards to key milestones. Overall, we see the impact of this as POSITIVE with a STRONG degree, where we think ETEL should be worth EGP22.5/share (+89% upside). But let’s first lay down the impact on ETEL and VOD.
Amr Hussein Elalfy
MBA, CFA
Head of Research
T +202 3300 5724