The Egyptian government progressed a plan to cut its ownership of Telecom Egypt, selling a 9.5 per cent stake for EGP3.8 billion ($121.6 million).

In a translated statement, the Ministry of Finance (MoF) noted it sold around 162 million shares, or 9.5 per cent of the operator, at EGP23.11 to qualified individuals and financial institutions.

Prior to the sale, the Egyptian state owned an 80 per cent stake in the operator, with the remainder floated on the stock market.

The transaction is part of a two-stage sale where another 0.5 per cent of the operator’s equity owned by the state has been allocated for sale to Telecom Egypt employees. The process to sell shares to staff is ongoing.

Reuters reported the government moved ahead with selling its stake in the operator after Prime Minister Mostafa Madbouly committed to advancing the country’s privatisation programme earlier this year.

The news outlet noted there is an aim to sell state assets worth $2 billion by June due to economic headwinds.