EGYPT – Vodafone Group, one of the largest telecommunications companies in the world has announced the sale of its 55% stake in Vodafone Egypt to Saudi Telecommunications Company, STC.
Vodafone has already signed a memorandum of understanding with Saudi Arabia over the sale of its entire stake in Vodafone Egypt to the Saudi telecommunication giant.
STC released a statement saying, “stc and Vodafone (“the Parties”) have agreed a cash consideration of US$ 2,392m (SAR 8,970m3) for Vodafone’s 55% shareholding in Vodafone Egypt, equivalent to a total Enterprise Value of US$ 4,350m (SAR 16,312m3) for Vodafone Egypt.”
The statement further revealed that, On completion of the transaction, Vodafone and stc intend to enter into a Partner Market Agreement, which will include use of the Vodafone brand, and a range of other Vodafone services.
Nasser al Nasser, Chief Executive of stc, said: “The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region.”
“The transaction, which is still subject to detailed due diligence, confirms stc’s eagerness to maintain a leadership position not only in the KSA, but also in the wider region.”
Vodafone Group CEO, Nick Reed announced the sale during a meeting with the Egyptian Prime Minister, Mostafa Madbouly, in the presence of Minister of Communications and Information Technology Amr Talaat.
Reed said he had specifically come for the meeting with Madbouly to officially notify the Egyptian government of the sale.
By the time of the sale, Vodafone Egypt had the most mobile phone users in Egypt, accounting for 38% of the total mobile subscribers, followed by Etisalat with 31% and Orange with 29%.
Reed praised the “excellent” cooperation between Egypt and Vodafone International over the course of 22 years.
The Vodafone Group CEO also acknowledged the Egyptian government’s “support” for the company, which he said made Egypt one of the most important areas for the company in terms of its investments around the world.
Reed explained that Vodafone’s decision is mainly related to the company’s strategy to focus on investments.
During the meeting, Talaat said that the Egyptian market remains “promising” and that the Egyptian telecom sector is attractive to investments.
Talaat added that the Ministry of Communications and Information Technology will continue to cooperate with Vodafone International on remaining projects being implemented at the present time.
On his part, the Prime Minister also expressed Egypt’s appreciation of years of cooperation with the global Vodafone Group.