Wedoany.com Report-Sept. 9, Telecom Egypt has announced that its board of directors has granted preliminary approval to a binding offer from Helios Investments for the acquisition of a majority stake in a newly established subsidiary that will own the Regional Data Hub (RDH).

Under the proposed agreement, Helios Investments will acquire between 75% and 80% of the shares in the subsidiary, while Telecom Egypt will retain a minority stake ranging from 20% to 25%. This structure is designed to allow both parties to participate in the growth of Egypt’s digital infrastructure while ensuring that Telecom Egypt maintains a strategic shareholding in the new venture.

The subsidiary will focus on the development and operation of data centres in Egypt following the restructuring of the RDH assets. The initiative aims to strengthen the country’s role as a regional hub for digital services, driven by rising demand for data connectivity and hosting solutions.

Telecom Egypt disclosed that the offer values 100% of RDH at $230 million on a debt-free, cash-free basis. The valuation could increase to $260 million if specific pre-agreed key performance indicators (KPIs) are achieved. This mechanism provides flexibility for both parties while linking the final consideration to the subsidiary’s operational performance.

Despite the board’s preliminary approval, the transaction is subject to several conditions. Completion will require the signing of definitive agreements, the successful execution of the restructuring process, and the receipt of necessary corporate and regulatory approvals. Additionally, compliance with Article 43 (bis) of the Listing and Delisting Rules of the Egyptian Exchange is required before the deal can be finalised.

If successfully concluded, the agreement is expected to accelerate the growth of Egypt’s data infrastructure, with Telecom Egypt and Helios Investments combining their expertise to expand local and regional capabilities in digital connectivity. The partnership aligns with broader industry trends that highlight the increasing importance of data centres as essential components of the global digital economy.

The creation of the new subsidiary and the involvement of Helios Investments signal a step toward attracting more international capital to Egypt’s technology sector. It also reflects confidence in the growth potential of the country’s digital market and its position as a key player in regional connectivity.

Through this transaction, Telecom Egypt seeks to enhance the value of its data assets, while Helios Investments aims to leverage its resources and experience to develop scalable infrastructure. Together, the two companies plan to strengthen Egypt’s position as a competitive hub for digital services in the region.