Vodafone signs an agreement with Saudi Telecom Company for the sale of 55% of Vodafone Egypt, the largest mobile operator in the country. According to the provisions of the agreement, Vodafone will collect from the sale of its stake in the African subsidiary almost 2,4 billion dollars, for an enterprise value relating to 100% of Vodafone Egypt equal to 4,35 billion dollars.
The news had been anticipated in recent days by Bloomberg and today, January 29, the company confirmed it. The parties have signed a memorandum of understanding and the sale will be finalized once the due diligence has been conducted. According to forecasts, the operation should close by the end of June.
“The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the Mena region (Middle East and North Africa),” commented the CEO of STC, Nasser al Nasser.
The two companies have also agreed to a long-term agreement which provides that the Vodafone brand will continue to be used in Egypt.
On the London Stock Exchange, Vodafone shares gained 0,4% to 157,15 dollars after closing the session on Tuesday 28 January up 1,53%.
