Vodafone PLC today revealed its plan to move its 55% stake of Vodafone Egypt to its sub-Saharan Africa subsidiary, Vodacom Group.
The transfer to Vodacom, which is 60.5% owned by Vodafone, will enhance the financial services and connectivity in Egypt, it said.
It said the move will also accelerate growth in smart technology, as well as allowing Vodacom to gain further exposure to a leading business in an increasingly attractive market.
The deal is valued at GBP2.02bn with 80% (GBP1.62bn) to be settled via issuing 242mln new Vodacom shares to Vodafone, while the outstanding 20% will be settled in cash.
For the transaction to be approved, Vodacom’s independent non-executive directors and its shareholders must permit the transaction, while Vodafone shareholders’ approval is not needed.
Public Investment Corporation, which owns 14.3% of Vodacom’s shares and 36.1% of its shares outside those held by Vodafone, has given the nod to the transaction, as have YeboYethu Investment Company (RF) Proprietary Limited, which owns 6.2% of Vodacom’s total shares.
The Financial Surveillance Department of the South African Reserve Bank and the National Telecom Regulatory Authority of Egypt must also approve the transaction for it to go ahead.