Telecom Egypt and Vodafone Egypt ink modified shareholder agreement

8 Jun 2021

Telecom Egypt and Vodafone Group have announced the signing of a modified shareholders’ agreement related to Egyptian operator Vodafone Egypt. According to the companies, the new agreement includes changes to Vodafone Egypt’s dividend policy, whereby that company will pay a one-time dividend of EGP10 billion (USD636 million) to its shareholders during the 2021 calendar year, with EGP2 billion of the total reported to have already been paid, back in March 2021. Meanwhile, the parties have also agreed on a minimum dividend pay-out ratio of 60% of free cash flow going forward, with the modified signed agreement also giving Vodafone Group the right to transfer its shareholding in Vodafone Egypt ‘within the broader Vodafone Group’. For its part, Telecom Egypt maintains its existing rights in the agreement, while noting it had obtained ‘certain enhanced minority rights including access to information’.

Adel Hamed, Telecom Egypt’s Managing Director and CEO, said of the development: ‘We are pleased to have reached an agreement that is mutually beneficial to both parties. Telecom Egypt has been and continues to be a strategic partner to Vodafone Group in the Egyptian market. This agreement guarantees the preservation of our strategic partnership in light of an enhanced shareholders’ agreement that provides Telecom Egypt with visibility on its investment and its expected returns based on Vodafone Egypt’s performance and gives our shareholders comfort that our participation in the company continues to be fruitful and rewarding.’

Egypt, Telecom Egypt, Vodafone Egypt, Vodafone Group