Telecom Egypt has decided not to move forward with the proposed transaction to sell a majority stake in a subsidiary holding its Regional Data Center Hub (RDH), to Helios Investments.
The decision was made by the company’s Board of Directors at a meeting held on 15 July 2026.
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The transaction under discussion could have seen Helios Investments acquire a stake of between 75% and 80% in a new subsidiary set up to own and operate the RDH.
Telecom Egypt stated that certain conditions outlined in the executed term sheet, including requirements involving third parties, were not satisfied, preventing the transaction from being completed in accordance with the agreed terms.
The initial disclosure regarding this proposed agreement was made on 7 September 2025, following the Board’s preliminary approval of a binding offer from Helios Investments earlier the same month.
At that time, Telecom Egypt had signalled its intention to pursue the deal, subject to final due diligence and satisfaction of specified conditions.
Despite the cancellation of the proposed transaction with Helios, Telecom Egypt says it remains committed to its strategic plan for its data centre operations.
The company will proceed with efforts to carve out the assets and operations related to its data centre services into a wholly owned subsidiary, aimed at focusing resources and expertise on developing this part of the business.
Telecom Egypt reaffirmed its belief that the global data centre sector is experiencing fast growth, with the Egyptian market also witnessing increased demand.
The new subsidiary is intended to consolidate a specialised team and operational model to enhance growth and take advantage of market opportunities in data centres.
According to Telecom Egypt, its ongoing operations in the data centre sector will continue uninterrupted, without any financial or operational impact resulting from the withdrawal from the Helios transaction.
The company also stated that the rights of existing parties remain unaffected by this decision.
