CAIRO: Telecom Egypt said on Tuesday it would seek to increase its stake in Vodafone Egypt by up to 24.4 percent in a deal worth LE 5.856 billion ($1.02 billion). Telecom Egypt already holds a 25.5 percent stake in Vodafone Egypt, one of two mobile phone operators in the country of 73 million. Telecom Egypt said in a statement the firm s investment committee had approved the launch of an offer for the additional stake at a price of LE 100 per share. A source close to the deal said Telecom Egypt was seeking all the outstanding shares not held by Vodafone, including a 16 percent free float. Vodafone owns 50.1 percent of Vodafone Egypt. Vodafone Plc did not want to decrease its participation, the source said, asking not to be named. The news pushed Vodafone Egypt shares 14.5 percent higher to LE 97.15 by 10:43 GMT. Shares in majority state-owned Telecom Egypt also soared 12.9 percent to LE 13.85. Telecom Egypt said in July it would resume close cooperation with Vodafone Egypt after failing in its bid for the country s third mobile phone license, won by Etisalat of the United Arab Emirates. Telecom Egypt said it would approach the Egyptian Capital Markets Authority to request approval for the publication of the offer in the coming few days. Telecom Egypt has informed Vodafone Group Plc of its decision, it said. The remaining shares in Vodafone Egypt are held by Egypt s Alkan Group, with 5 percent and the state s Banque du Caire, with 3.4 percent, according to Vodafone Egypt s Web site. Reuters
