UK-based Vodafone Group has announced it has completed the transfer of its 55% shareholding in Vodafone Egypt to its African subsidiary, Vodacom Group. In a press release regarding the development Vodafone Group claimed the development ‘simplifies the management of [its] African assets’, while suggesting that as a result of the shareholding transfer Vodacom ‘gains exposure to another leading business in an attractive market, diversifying its portfolio and accelerating its growth profile’. Further, it has been claimed that Vodafone Egypt will benefit from closer co-operation with Vodacom, enabling it to accelerate growth in financial services and IoT.
With regards to specifics of the transaction, Vodafone Group confirmed it has been issued with 242 million shares in Vodacom and received cash proceeds of EUR577 million (USD611 million) in exchange for its 55% shareholding in Vodafone Egypt. Meanwhile, as a result of the transaction, Vodafone Group’s shareholding in Vodacom has increased from 60.5% to 65.1%.