Egyptian giants sign profits deal

26 April 2019

Egypt Telecom and Vodafone Egypt have signed two 10-year transmission and infrastructure agreements worth a total of LE10.85bn.

The first agreement concerns the distribution of profits from Vodafone Egypt to Telecom Egypt, which amounts to LE5.5bn. The first tranche of LE4.8bn was paid in March, while LE700m is slated for June 2020.

The total distribution of profits for Telecom Egypt since the signing of the partnership contract between the two companies has amounted to LE8bn. The second agreement will see Telecom Egypt provide fibre optic access services to the Vodafone network.

“We have reached an agreement with Vodafone International regarding Telecom Egypt’s share of the profits, which we consider an important step,” said managing director and chief executive officer, Telecom Egypt, Adel Hamed.

Vodafone Egypt’s chief executive officer Alexandre Froment-Curtil said that the confidence of the government and the board of Telecom Egypt in investing in Vodafone Egypt reflects Vodafone’s strength and success. “We believe that the distribution of profits to Telecom Egypt as a shareholder in Vodafone Egypt will help build a strong infrastructure in Egypt,” he added.