Vodafone halts talks on possible Egyptian stake sale

2 Jun 2010

UK-based mobile giant Vodafone Group has reportedly ended negotiations over a possible divestment of its interest in its Egyptian subsidiary Vodafone Egypt, according to the Financial Times. Vodafone Group announced that it halted ongoing discussions with fixed line incumbent Telecom Egypt (TE) regarding the sale, just two weeks after it first emerged that the two companies were in talks with a view to TE purchasing Vodafone’s 55% stake in the cellco; the fixed line operator already holds a 45% stake in Vodafone Egypt. According to reports TE approached the British group in April to sound out the possibility of a possible deal, which had been valued at between GBP3 billion and GBP4 billion (USD4 billion-USD7 billion). Issuing a statement on the development, Vodafone noted: ‘The parties have agreed that it is in the best interest of [Vodafone Egypt] that the current ownership structure should remain in place.’

Egypt, Telecom Egypt, Vodafone Egypt, Vodafone Group