November 10, 2021

Telecom Egypt says Vodafone Group receives offer to transfer stake in Vodafone Egypt

ArabFinance: Telecom Egypt (ETEL) announced that Vodafone Group has received an initial offer from the South African group Vodacom, upon which Vodafone Group will transfer its stake in Vodafone Egypt to Vodacom, according to a pess release.

Vodafone Group has not revealed the value and structure of the offer yet.

On June 7th, 2021, Telecom Egypt and Vodafone Group signed a modified shareholders’ agreement, which grants the Egyptian telecom company further rights and benefits and allows Vodafone Group to transfer its shareholding in Vodafone Egypt within the group.

Under this agreement, Telecom Egypt has the right to buy Vodafone Group’s stake in Vodafone Egypt through the right of first refusal (RoFR), along with information rights to ensure visibility for the company on its investment in Vodafone Egypt.

Moreover, the agreement set a committed minimum dividend policy for Vodafone Egypt of 60% of free cash flow starting 2022, as well as dividends worth EGP 10 billion to shareholders in 2021.

“We believe that the amendments to the shareholders’ agreement enhances Telecom Egypt’s visibility on its investment and its expected returns based on Vodafone Egypt’s performance and gives our shareholders comfort that our participation in the company continues to be fruitful and rewarding,” Managing Director and CEO Adel Hamed commented.

“In addition, the new shareholders’ agreement preserves Telecom Egypt’s rights and enhances its options to be more executable in the absence or presence of a deal. The commitment of Vodacom to the deed of adherence of the shareholders’ agreement as was reported to us by Vodafone Egypt confirms Vodafone Groups’ commitment to the strategic partnership with Telecom Egypt and the Egyptian market,” Hamed added.

Cairo-based Telecom Egypt is a joint-stock company, which operates in the sectors of communications, marine cables, infrastructure, internet services, and outsourcing services. It offers a range of fixed-line and retail telecommunications services, as well as wholesale telecommunications services.


Categories : telecom

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