Helios eyes majority in Telecom Egypt’s data center unit: Africa-focused and London-based PE outfit Helios Investment Partners has secured preliminary approval from Telecom Egypt’s board to acquire 75-80% of the subsidiary that will own the telco’s Regional Data Hub (RDH) assets, according to a press release (pdf). The proposed binding offer values RDH at USD 230 mn for 100% of the equity, with the figure potentially rising to USD 260 mn based on performance.

What we know: The unnamed vehicle, set to house RDH’s assets via a restructuring, will focus on developing the domestic data center scene. The transaction is still subject to regulatory approval and customary closing conditions. A final fair value determination will be carried out by an independent financial advisor licensed by the Financial Regulatory Authority.

The assets in question: Telecom Egypt’s RDH assets include the fully utilized 2.5 MW RDH I data center as well as its 4.5 MW RDH II center — currently under construction, with completion scheduled by year-end, according to a statement from November. Both assets received the tier III design certificate, meaning they feature independent and redundant power and cooling systems that ensure resilient operations in cases of disruptions.

Helios Investment Partners’ been building up to a bigger Egypt play since last year, when it bought 49% of Raya Foods for USD 40 mn. The PE firm flagged plans to channel as much as USD 250 mn into three more acquisitions across fintech, digital infrastructure, and consumer goods.

ADVISORS- EFG Hermes is acting as sole M&A financial advisor to Telecom Egypt, with Adsero-Ragy Soliman and Partners and A&O Shearman providing counsel.

ICYMI- Egypt is emerging as a key African data center market — alongside Kenya, Nigeria, and South Africa, as the continent’s sector is projected to expand 17.5% y-o-y over the next year, according to the African Data Center Association. The country’s location, digital initiatives, and grid connectivity are drawing investors in — with rising demand for cloud services supporting its role as a hub for locally hosted content.

IN OTHER M&A UPDATES-

Adia could join USD 1.6 bn Yondr acquisition: The Abu Dhabi Investment Authority (Adia) is likely to participate in global operator Vantage Data Centers’ potential USD 1.6 bn acquisition of London-headquartered Yondr Group, Bloomberg reports, citing unnamed sources. The acquisition would see Vantage take over the hyperscale data center developer’s Malaysia assets. While the transaction value could change as talks are ongoing, a takeover would boost their joint backer DigitalBridge’s portfolio.

REMEMBER- Abu Dhabi is already familiar with both Yondr and DigitalBridge. Last year, Adia acquired a 40% stake in Landmark Dividend — a DigitalBridge subsidiary — while Abu Dhabi-based sovereign wealth fund Mubadala invested in Yondr. Yondr later sought USD 500 mn in debt to back a project in Malaysia, which is emerging as a key base for Southeast Asia’s data centers.

Tags: