Telecom Egypt announced that the South African group Vodacom has made an initial offer to acquire Vodafone Group’s stake in Vodafone Egypt.
Vodafone Group will reveal the value and structure of the offer, Telecom Egypt said in a statement on Wednesday.
On 7 June, a modified shareholders’ agreement was signed, granting Telecom Egypt further rights and benefits and allowing Vodafone Group to transfer its shareholding in Vodafone Egypt within the group.
Under the deal, Telecom Egypt has the right to buy Vodafone Group’s shares in Vodafone Egypt through the right of first refusal (RoFR) process as well as information rights with regular disclosure to ensure visibility for Telecom Egypt on its investment in Vodafone Egypt.
Additionally, the deal sets a committed minimum dividend policy for Vodafone Egypt of 60% of free cash flow (FCF) starting 2022, in addition to dividends worth EGP 10 billion to shareholders in 2021.
Telecom Egypt’s Managing Director and CEO, Adel Hamed, commented: “We believe that the amendments to the shareholders’ agreement enhance Telecom Egypt’s visibility on its investment and its expected returns based on Vodafone Egypt’s performance.”
“The new shareholders’ agreement preserves Telecom Egypt’s rights and enhances its options to be more executable in the absence or presence of a deal. The commitment of Vodacom to the deed of adherence of the shareholders’ agreement as was reported to us by Vodafone Egypt confirms Vodafone Groups’ commitment to the strategic partnership with Telecom Egypt and the Egyptian market,” Hamed added.
