Telecom Egypt signed an amended shareholder agreement with Vodafone Group.
The agreement includes amendments to Vodafone Group’s dividend policy in which the group pays exceptional dividends of EGP 10 billion to shareholders for 2021, of which an amount of EGP 2 billion has already been paid out in March, according to a statement by the Ministry of Communications and Information Technology on Monday.
The two companies also agreed to set a minimum future dividend of 60% of Vodafone Egypt’s free cash flow (FCF).
Under the agreement, Vodafone Group has the right to transfer the ownership of its stake in Vodafone Egypt within the group, while Telecom Egypt retains the rights provided in the current shareholders’ agreement, as well as gaining some additional minority rights, including the right to obtain information about its investment within the group.
The Minister of Communications and Information Technology, Amr, Talaat, said that “the agreement comes within the framework of enhancing coordination between companies, which will have a positive impact on developing the Egyptian telecommunication market and improving the quality of services provided to users.”
