Vodacom Group of South Africa has won the backing of its shareholders to acquire 55% of Vodafone Egypt from Vodafone Group to the tune of R41bn (US$2.7bn).
The buyer plans to issue 242 million new ordinary shares at R135.75 per share to finance 80% of this investment, while the remaining R8.2bn will come from its cash resources, the company said.
“This is an exciting and important step for Vodacom, as the acquisition of Vodafone Egypt will allow us to transition from a telecommunications company to a technology company,” said chief executive officer Shameel Joosub.
The deal forms part of Vodacom’s strategy to strengthen its presence in Africa and once completed, it will offer the company new growth opportunities beyond its key markets in sub-Saharan Africa. Vodacom will therefore benefit from Vodafone Egypt’s financial services platforms, which concentrate more than 80% of the unbanked Egyptian population.
Vodacom Group said it expects the deal to be completed before the end of its 2021 fiscal year (March 2022).
Source: https://www.africanwirelesscomms.com/news-details?itemid=4467#