Vodacom Group shareholders approve plans for acquisition of Vodafone Egypt stake

19 Jan 2022

At an extraordinary general meeting (EGM) held on 18 January, Vodacom Group investors approved a planned transaction which will see the UK’s Vodafone Group transfer its 55% stake in Vodafone Egypt to the South African group.

As previously reported by CommsUpdate, in November 2021 UK-based Vodafone announced the signing of a deal to transfer its stake in Vodafone Egypt to its sub-Saharan African subsidiary in a deal valued at around EUR2.4 billion (USD2.7 billion).

Now, in a stock exchange filing regarding the development, Vodacom Group noted that the proposed transaction remains conditional upon: the Johannesburg Stock Exchange (JSE) approving a listing of the consideration shares on the JSE with effect from the effective date; Vodacom Group procuring approval of the National Telecom Regulatory Authority of Egypt (NTRA) for ‘the transfer of the sale shares from the sellers to Vodacom Group and (to the extent required by the NTRA) any other shares pursuant to the mandatory tender offer’; and Vodacom Group obtaining an exemption from Egypt’s Financial Regulatory Authority (FRA) from the applicability of a mandatory offer, or in case a mandatory offer is required, the preliminary approval by the FRA in relation to such an offer. Meanwhile, Vodacom Group notes that no competition approval is required in Egypt or South Africa with only a post-closing notification required in Egypt.

Egypt, Vodacom Group, Vodafone Egypt, Vodafone Group