We look forward to continuing our close relationship with the business through a Partner Market agreement, and building on our significant shared service operations in Egypt, known as _VOIS (Vodafone Intelligent Solutions).” Additionally, it will reduce our net debt and unlock value for our shareholders. This transaction is consistent with our efforts to simplify the Group to two differentiated, scaled geographic regions – Europe and sub-Saharan Africa. “Under STC, I believe they will continue to flourish. “I am deeply proud of our business in Egypt, being the clear number one leader in the market,” said Nick Read, chief executive of Vodafone Group. In 2019, it sold its New Zealand business after previously offloading stakes in US carrier Verizon Communications in 2013 and Asian operators Softbank Corp and China Mobile in 2010. The company has divested a number of assets in recent years. Vodafone said it will use proceeds from the deal to reduce its outstanding debt. The price equates to an enterprise value of seven times core earnings, Vodafone said, a premium on the multiples of both joint-venture partners. With 44 million subscribers and a 40 percent market share, Vodafone Egypt is the country’s biggest mobile operator.įor Vodafone, the divestiture of its Egypt stake is in keeping with the company’s efforts to streamline its operations to focus on Europe and sub-Saharan Africa. Under the terms of the deal, Vodafone and Saudi Telecom have agreed to a long-term partnership, which will include the use of the Vodafone brand, preferential roaming arrangements, and access to Vodafone’s central procurement function. The deal would be the most significant acquisition completed by STC since it bought 35 percent of Oger Telecom for $2.6bn in 2008. The deal values Vodafone Egypt at $4.4bn. Subject to regulatory approval and closing conditions, the parties expect the deal to be completed by the end of June 2020. and China Mobile Ltd in 2010.Saudi Telecom Co (STC), the largest telecom operator in Saudi Arabia, is to acquire Vodafone Group’s 55 percent stake in Vodafone Egypt for $2.4bn. in 2013 and Asian operators Softbank Corp. Vodafone sold its New Zealand business last year, after offloading stakes in US carrier Verizon Communications Inc. Vodafone has been retrenching outside Europe and sub-Saharan Africa over the past decade, to raise cash amid leverage concerns and build scale in core markets such as Germany. The potential sale is also “consistent with our efforts to simplify the group to two differentiated, scaled geographic regions-Europe and sub-Saharan Africa," Vodafone CEO Nick Read said in a statement. Vodafone said it will use proceeds from the deal to reduce debt. Telecom Egypt said in a statement Wednesday that it was considering “all the possible ways it may deal with its investment." Vodafone Group had also expressed interest in buying the stake it didn’t own. More than six years ago, STC had tried to acquire Telecom Egypt’s holding in the business. “Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuing success." “The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region," chief executive officer Nasser Sulaiman Al Nasser said in the statement. State-run Telecom Egypt, which has a 45% stake in Vodafone Egypt, rose 6.2%. Vodafone Egypt shares fell 0.8% at 11:35 in Riyadh, and London-based Vodafone Group dropped 0.2%. It helps Vodafone further streamline its focus on Europe and sub-Saharan Africa, and cut debt. STC still gets more than 90% of revenue from its domestic market. The deal gives STC, as the Riyadh-based firm is known, access to a country of over 80 million people where Vodafone Egypt has a market share of about 44%.