RIYADH: Egypt’s government has sold a 9.5 percent stake in state-controlled Telecom Egypt for 3.75 billion Egyptian pounds ($121.6 million), the finance ministry has revealed, breathing life into a privatization program that had seemingly stalled. Egypt desperately needs proceeds from these deals to meet a series of foreign debt obligations over the coming few months. Telecom Egypt’s is the second sale of state assets since Prime Minister Mostafa Madbouly promised on April 29 to sell assets worth $2 billion by the end of June. Under a $3-billion, 46-month financial support package signed in December, Egypt promised the International Monetary Fund it would roll back the state’s involvement in the economy and allow private companies a much greater role. The stock exchange said on Sunday the sale of 162.2 million shares of Telecom Egypt had been executed for a total of 3.75 billion pounds. The Finance Ministry said the shares were sold at 23.11 pounds each in a subscription that was 3.11 times oversubscribed. Another 0.5 percent of the shares are now being offered to Telecom Egypt employees until May 25. Telecom Egypt is the first telecom operator in Egypt to provide all telecom services to its customers including fixed and mobile voice and data services. The company also owns a 45 percent stake in Vodafone Egypt. The two-part sale will reduce the government’s stake in Telecom Egypt to 70 percent from the previous 80 percent, with the other 20 percent floating on the Egyptian Exchange. Two local investment banks, CI Capital and Ahly Pharos, were managing the sale, according to market sources. The ministry statement did not say what portion of the shares were sold to local buyers as opposed to non-Egyptians. Al Mal newspaper said on Thursday that Moon Capital, based in New York, was among the bidders. Egypt has been looking to raise foreign currency through its asset sales. In March, Egypt said it will start procedures to list two of its national army companies, Wataniya and Safi, on its stock exchange in an attempt to further develop its private sector. According to an official cabinet statement, the move to offer these two companies reflects the government’s first step towards enforcing its announced plans of selling stakes in over 32 state-owned companies by March 2024. Wataniya, the national company for selling and distributing petroleum products, and Safi, the national company for bottling natural water are both currently owned by the Armed Forces’ National Service Projects Agency. Around 32 state companies will either be listed on the Egyptian stock exchange or sold to strategic investors over the coming year, Prime Minister Moustafa Madbouly revealed in February earlier this year. The government aims to exit from seven sectors, including pharmaceutical, chemical, and construction, besides reducing its investments in other areas such as power plants. First announced more than five years ago, the Egyptian government’s plan to sell stakes in public companies has gained new urgency since the Russian invasion of Ukraine. The war triggered heavy foreign investment outflows from the Egyptian financial markets and threw the African country’s economy into crisis. (With input from Reuters)