ArabFinance: Vodafone Group approved transferring its 55% shareholding in Vodafone Egypt to Vodacom Group Limited (“Vodacom”), its sub-Saharan African subsidiary, the company said in a statement.

According to the company, this transfer simplifies the management of Vodafone’s African holdings and further strengthens the delivery of connectivity and financial services in Africa.

The EUR 2.72 billion transaction is expected to generate clear benefits for Vodafone, Vodacom and Vodafone Egypt.

The South Africa-based telecommunications company said it intends to settle 80% of the transaction by issuing new shares, with the remaining 20% settled in cash.

As a result, Vodafone’s ownership in Vodacom will increase from 60.5% to 65.1%.

The remaining 20% of the Purchase Consideration EUR 473 million will be settled in cash.

Under the terms of the sale and purchase agreement, the cash element of the Purchase Consideration will be adjusted for any movement in the net debt and agreed working capital of Vodafone Egypt between signing and closing.

As such, Vodafone will be entitled to its 55% share of the cash generated by Vodafone Egypt between signing and closing.

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.

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.

arabfinance