Saudi Telecoms To Acquire 55% Of Vodafone Egypt In US$2.4-Billion Deal - Reports
Saudi Telecoms is getting closer to purchasing a 55% stake in Vodafone Egypt for a staggering US$2.39-billion.
According to a joint statement released by Vodafone and Saudi Telecoms, the operators have entered into a long-term agreement in which Vodafone's exit will not lead to the termination of the use of the Vodafone brand.
The agreement also includes preferential roaming arrangements such as access to Vodafone's central procurement operations.
Nasser al Nasser, the CEO of Saudi Telecoms, said that Vodafone Egypt is a leading player in the Egyptian mobile market, and Saudi Telecoms looks forward to contributing further to its success.
The partnership, if completed, will bring Vodafone Egypt's valuation to approximately US$4.35 billion, which is seven times the mobile operator's EBITDA for the period that ended in September 2019.
Nick Read, the CEO of the Vodafone Group, said that the transaction is consistent with Vodafone's efforts to extend the group across Europe and sub-Saharan Africa.
This development has been well-received on the stock market as Telecom Egypt's shares went up by 4% following the company's announcement.
The transaction is expected to materialise by the end of June 2020 and is still subject to regulatory approval.
Credit: This article originated from www.itwebafrica.com