Egypt's NBE, Banque Misr collect EGP 705 bln from high-yielding CDs issued on March 21    Gold prices in Egypt on May 24    Saudi Arabia's Mouwasat signs MoU to acquire Egypt's Al-Marasem International Hospital    Egypt to inaugurate new Sphinx International Airport in mid-July    Turkey's finance minister to visit Egypt for first time in 9 years    Finland and Sweden formally apply to join NATO alliance    Saudi Arabia prolongs Yemen central bank's deposit    Egypt Knauf launches its first training centre in Egypt    Egypt uncovers official logo for COP27    Noura Al-Mutair – first Gulf female boxer in World Championships    Egypt unveils 50 pound coin minted to mark Avenue of Sphinxes grand reopening    Liverpool fans: "You'll Never Walk Alone" to Cristiano Ronaldo    Hot, rainy weather hits Egypt this week    COVID-19 in Egypt: infections fall to 124 cases last week    Egypt to play key role in integrating water, climate issues globally – World Bank official    Egypt's telecoms regulator announces working hours for holy month of Ramadan    Maha karara joins AAIB as Head of Corporate Communications, Sustainability    Egypt works on charting cooperation strategies with international institutions for 5 years: Al-Mashat    Over 2.4 million newborns examined for hearing impairment: Health Ministry    Netflix releases trailer of Arab adaption of 'Perfect Strangers' film    Balqees to headline concert celebrating launch of streaming giant LIVENow in MENA    Sawsan Badr to be honoured at Aswan Women Film Festival    MP Abdel Hady Al-Qasby calls government to facilitate and support NGOs    Al-Sisi follows up on 'Great Transfiguration Project' in St. Catherine    Cairo, London stress need to strengthen cooperation to face climate change    Foreigners account for 22.6% of Egypt's T-bills issuances in 1H 2021: CBE    Egypt's ambassador to Italy passes away    Egypt confirms readiness to help African countries face terrorism and extremism    An estimated 235 million people needed humanitarian assistance and protection in 2021, an increase of 40% compared to 2020: IOM Egypt    Egypt, DRC discuss water cooperation during WYF    Egypt, DR Congo discuss boosting bilateral cooperation during WYF    Cameroonian police probe assault on three Algerian journalists covering AFCON    Pharaohs start AFCON 2021 campaign with fierce clash against Nigeria    Foreign Ministry opens capacity building course for French-speaking African diplomats    Egypt's trade with Nile basin countries climbs 26% y-o-y in 9 months    Ethiopia halts work at its embassy in Egypt for 'economic reasons'    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.

Vodafone sells Egypt stake to South Africa affiliate 'Vodacom' for €2.72bn pending regulatory approval
No change in company's brand, as transfer comes within restructure group's companies, says Vodafone Egypt official
Published in Daily News Egypt on 10 - 11 - 2021

Vodafone Group has agreed to transfer its 55% stake in Vodafone Egypt to the former's South African affiliate company, Vodacom. Telecom Egypt owns the remaining 45%.
It added in a press statement on Wednesday that the deal will bring clear benefits to the three companies, which are Vodafone Group, Vodafone Egypt, and Vodacom, expecting the deal to close before 31 March 2022.
Ayman Essam, head of the foreign and legal affairs at Vodafone Egypt, said that the sale is an internal process between the group companies, so Telecom Egypt is not entitled to submit a purchase offer under the pre-emption right.
He told Daily News Egypt that according to the amendment of the shareholders' agreement between Telecom Egypt and Vodafone Group, the latter has the right to transfer its stake between the group's companies, provided that Telecom Egypt is notified of all the details, which has already happened.
Essam confirmed that the Vodafone Egypt brand remains unchanged after the completion of the ownership transfer process.
Telecom Egypt had announced that Vodafone Egypt's executive management had informed it that Vodafone Group had received an initial offer from its subsidiary Vodacom to transfer its stake in Vodafone Egypt to Vodacom.
Vodafone Group said in its statement that its stake in Vodafone Egypt is worth €2.722bn, free of debt, noting that based on its share in the company's debts, the value of its equity amounts to €2.365bn.
It added that the transfer of ownership will be done through the settlement of about 80% of the purchase allowance of €1.892bn by issuing 242 million new ordinary shares of Vodacom in favor of Vodafone at an issue price of ZAR 135.75/share.
As a result of this settlement, Vodafone's ownership in Vodacom will increase from 60.5% to 65.1%.
The company stated that the settlement of the remaining 20% of the value of the transfer of shares would be settled in cash, amounting to €473m.
The company said that the completion of the transaction is subject to a number of additional conditions, including, for example, the approval of the Financial Supervision Department of the Reserve Bank of South Africa and the approval of the National Telecommunications Regulatory Authority in Egypt.
It explained that Vodacom has committed itself to Vodafone International that it will sign the deed of commitment to the shareholders' agreement with Telecom Egypt.
Last June, Vodafone Group and Telecom Egypt signed the amended shareholder agreement of Vodafone Egypt.
The agreement granted many additional advantages and rights to Telecom Egypt in exchange for the Vodafone Group obtaining the right to transfer the ownership of its stake in Vodafone Egypt within the Vodafone Group companies, conditioned on the submission of the new shareholder – to whom the share was transferred – a deed of commitment to all the terms contained in the amended shareholder agreement.
The statement said that Vodafone Egypt's management had reported that Vodacom had committed to submit the aforementioned instrument to Telecom Egypt.
Vodafone Group attempted previously to sell its stake in Vodafone Egypt and concluded a preliminary agreement with the Saudi Telecom Company (STC) for $2.4bn, but talks and negotiations stumbled more than once before stopping permanently in December 2020.

Clic here to read the story from its source.