Vodacom Group has agreed to acquire a 55 per cent shareholding in Vodafone Egypt from two wholly-owned subsidiaries of Vodafone Group, being Vodafone International Holdings and Vodafone Europe for $2.738 billion.
Subject to regulatory and shareholder approvals, 80 per cent of the offer consideration will be settled by the issue of new Vodacom Group shares, with the balance being settled in cash.
“Acquiring a majority stake in Vodafone Egypt would cement Vodacom Group’s position as Africa’s leading telco by advancing our strategic connectivity and financial services ambitions while increasing our total population coverage on the continent to over half a billion people and more than 40 per cent of Africa’s GDP,” said Shameel Joosub, Chief Executive Officer of Vodacom Group.
PwC has been appointed to provide a fair opinion on the proposed transaction, which will be included in the circular that will be distributed to shareholders ahead of a General Meeting in January 2022 at which minority shareholders will vote on the matter.
“We intend to provide an update on our medium-term targets at our full-year results, which will be reported in May 2022,” he added.
In 2017, Vodacom bought a strategic stake in Safaricom from Vodafone.
Vodafone Egypt launched services in 1998 and is now the largest mobile network operator in Egypt in terms of revenue and customers with mobile market shares of 43 per cent and 40 per cent, respectively.
Vodafone Egypt provides a range of integrated telecommunication services, including mobile and fixed voice, SMS, data and mobile money, to 43 million customers, serving both consumer and enterprise customers.