Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Tempting offer, matching Vodafone group's strategy: source
The Vodafone Group acquired Egypt's VOIS for EGP 1bn in November
Published in Daily News Egypt on 02 - 02 - 2020

Saudi Telecom Company (STC) agreed to acquire Vodafone International's share in Vodafone Egypt for $ 2.4bn.
Nicholas Reed, CEO of Vodafone International, said in a press statement that selling the group's share in Vodafone Egypt comes in line with the group's strategy to stimulate investments in international markets. The company also plans to achieve the best return for shareholders by focusing on European and African markets while trying to reduce the net debt burden.
He added that the group's presence in the Egyptian market witnessed many successes over the years, and that the market would continue to provide many benefits as the company continued with its long-term partnership agreement alongside Vodafone International Services Company (VOIS).
Ahmed Ramadan, investment associate, said there are several reasons that led Vodafone to leave the mobile market in Egypt, the most important of which is the state of saturation the market saw , both in terms of new subscribers and profitability.
Ramadan added that despite Vodafone Egypt's annual profits, these profits are faced by huge investments and the difficulty of settling these profits at the same rates in the coming years. This is due to the market's fierce competition and the state of saturation it suffered from.
Ramadan believes that the presence of TE as a partner in Vodafone Egypt and a competitor through “WE” is considered a motive for Vodafone International's exit. However, this provided a good opportunity for Vodafone International to find a buyer for its shares, which has reached about EGP 38.5bn.
A source at the communications sector told Daily News Egypt that Vodafone International focused on outsourcing services due to the prevalence of trained human cadres, saying that this is evident through Vodafone International's acquisition of the Vodafone Outsourcing company, a subsidiary of Vodafone Egypt, for EGP 1bn. This was back in November, the same month Vodafone started negotiations with STC to sell its share in Vodafone Egypt.
About 7,800 Egyptian youths work in VOIS. It offers its services to a number of regional and European markets.
The source explained that Vodafone International was looking for a profitable way out of the mobile market, which is what it found in the STC deal.
Ayman Essam, director of legal and external affairs in Vodafone Egypt, said that the negotiations with STC had been taking place for quite some time now in secrecy, but had finally reached an agreement in November.


Clic here to read the story from its source.