Vodacom to buy Egypt unit in $2.7 bn deal

Vodacom Group Ltd will acquire 55 per cent stake in Vodafone Egypt for $2.74 billion, expanding the carrier into Northern Africa for the first time.

Vodafone International Group said that it is diversifying Vodacom’s portfolio, giving it exposure to an “exciting growth market”.

Meanwhile, Vodafone Egypt will be able to accelerate growth in financial services and IoT markets thanks to closer ties with Vodacom.

The Johannesburg-based Vodacom will own 55 per cent of the Egyptian market leader, which means Vodafone Group will cease to be direct owners of Vodafone Egypt.

Some 80 per cent of the payment will be settled in new Vodacom shares, while the remainder will be paid in cash, according to a Vodacom statement released on Wednesday.

This move will simplify the operations management systems for the companies in which Vodafone operates in Africa, and will maximise the use of advanced financial services provided to its customers to achieve financial inclusion.

According to Vodafone International, the deal benefits all parties — Vodafone International, Vodacom and Vodafone Egypt — allowing Vodafone to organise its African operations and give priority to emerging markets that still and attract investment.

It represents a great opportunity for Vodafone Egypt to benefit from financial inclusion services and its diversity, to exchange experiences with African markets in the field of technology solutions and the Internet of Things, and to become a hub of excellence in both digital services and financial inclusion, the statement added.