(AlBorsa Photo)
Egyptian Prime Minister Ibrahim Mehleb issued a decree Wednesday, dismissing Telecom Egypt (TE) CEO Mohamed El-Nawawy.
At the time of printing, CEO of Mobiserve and founder of Tirocon JLT Tarek Aboualam, and Assistant to the Minister of TelecommunicationsKhaled Sherifwere the two candidates most likely to replace El-Nawawy.
Speculation has circulated over several media outlets during the past period on the dismissal of El-Nawawy. The company’s general assembly held a meeting Wednesday afternoon to enact the decision.
TE recorded a 25.3% decline in profits during the first nine months of 2014 compared to the same period last year. The decline came despite an increase in the company’s revenues during the first three quarters of 2014, compared to the same period during 2013.
In January 2015, an official at TE said that the company is planning to submit the arbitration proceedings between TE and Vodafone to the Court of Appeals to request that the verdict in favour of Vodafone be annulled.
The official added that the company is working to maintain public funds, and will pursue all legal avenues available to protect public funds and seize any available opportunity to maximise shareholder wealth. TE lost an arbitration case against Vodafone worth EGP 11bn a few days ago on interdependence prices, though the ruling did not require TE to provide any financial compensation to Vodafone.
During January, TE won a case worth EGP 48m against the Arab Company for Telecommunication Services at the Cairo Regional Centre for International Commercial Arbitration on the bonding agreement between the two companies. The case was raised by TE to demand financial compensation for the company violating the terms of their agreement with TE.
In February 2015, the Independent Trade Union of Workers at TE filed four lawsuits to stop the disassociation of TE from Vodafone in order to protect workers’ rights and the 5% lobby of minority shareholders. TE’s share in Vodafone is at EGP 7.7bn, 44.95% of Vodafone Egypt’s capital.
