Vodafone Group is transferring its 55% majority holding in Vodafone Egypt to its sub-Saharan Africa-focused unit Vodacom Group.
The deal values the 55% stake at €2.722 billion (US$3.15 billion), although this is reduced to €2.4 billion once debt is factored in. Egyptian incumbent Telecom Egypt holds the remaining 45% stake in Vodafone Egypt.
In a statement, Vodafone said that the transfer of the stake would simplify management of its African operations and “further strengthen the delivery of connectivity and financial services in Africa”. The group confirmed that around 80% of the deal would be settled via the issue of 242 million new ordinary shares in Vodacom, with the remainder in settled in cash. The share issue will boost Vodafone’s stake in Vodacom from 60.5% to 65.1%.
CEO of Vodacom Group Shameel Joosub said that the deal would allow Vodafone Egypt to work more closely with its parent firm, boosting growth in financial services and IoT. TeleGeography reports that the deal is subject to approval from various parties, including the Financial Surveillance Department of the South African Reserve Bank and the National Telecom Regulatory Authority (NTRA) of Egypt. The transactions is expected to close by 31st March 2022.