Vodafone Group To Transfer 55% Stake In Vodafone Egypt To Vodacom Group

Vodafone Group Plc (VOD.L), a British multinational telecom company, on Wednesday said it has agreed to transfer its 55 percent shareholding in Vodafone Egypt to Vodacom Group Limited, its sub-Saharan African subsidiary, for a transaction value of 2.72 billion euros on a debt, cash free basis.

The transaction, which is expected to be closed before March 31, 2022, simplifies the management of Vodafone's African holdings and further strengthens the delivery of connectivity and financial services in Africa, the UK-based Group said in a statement.

Based on Vodafone's 55 percent share of the net debt in Vodafone Egypt as on September 30, the total equity consideration is 2.36 billion euros.

Approximately 80 percent of the purchase consideration or 1.89 billion will be settled by the issue of 242 million new ordinary Vodacom shares to Vodafone at an issue price of ZAR 135.75 per share.

As a result, Vodafone's ownership in Vodacom will increase from 60.5 percent to 65.1 percent. The remaining 20 percent of the purchase consideration or 473 million euros is expected to be settled in cash.

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