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Vodafone To Sell 55% Stake In Egypt Unit To Saudi Telecom For $2.39 Bln

British telecom major Vodafone Group Plc (VOD.L,VOD) announced Wednesday that it has signed a Memorandum of Understanding to sell its 55 percent shareholding in Vodafone Egypt to Saudi Telecom Co.

The companies have agreed for a cash consideration of $2.39 billion or 2.17 billion euros for the stake. This is equivalent to an enterprise value for 100 percent of Vodafone Egypt of $4.35 billion or 3.95 billion euros.

The companies intend to enter into definitive agreements in relation to the transaction following completion of due diligence on Vodafone Egypt by Saudi Telecom The transaction is expected to close by the end of June 2020, subject to regulatory approval.

The companies further agreed the basis for a long-term Partner Market Agreement. This will include use of the Vodafone brand, preferential roaming arrangements, access to Vodafone's central procurement function, and a range of other services.

This agreement will ensure that Vodafone Egypt will be able to continue to offer its business and consumer customers world-class services and innovations.

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