03 February 2023
Vodacom Group has acquired a 55% stake in Vodafone Egypt. The transaction, which was carried out in the form of an over-the-counter market on the Egyptian Stock Exchange, saw Vodacom buy back 132 million shares for 59.7 billion Egyptian pounds.
In November 2021 Vodafone announced its intention to transfer its shares in Vodafone Egypt to Vodacom Group Limited, its subsidiary in sub-Saharan Africa. The latter then announced that it was going to issue 242 million new ordinary shares at a unit price of 135.75 rand to finance 80% of the cost of acquiring the stake. The remaining 20% will come from its cash.
The completion of this transaction consolidates Vodacom’s African operations and provides it with opportunities for accelerated growth beyond its key sub-Saharan African markets. In the Egyptian telecom market, Vodafone competes with Telecom Egypt, Etisalat, and Orange.