Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Vodacom shareholders back Egypt acquisition

Article Image
Vodacom Group's plan to acquire a 55% stake in Vodafone Egypt has received an overwhelming yes from shareholders, putting the SA-based telco on track to close the transaction before the end of March 2022.

At a General Meeting on Tuesday morning 99% of Vodacom minority shareholders voted in favor of the transaction, paving the way to fund the R41 billion (US$2.74 billion) transaction.

"This is an exciting and important milestone for Vodacom as the acquisition of Vodafone Egypt will be transformational in our evolution from a telco to a techco. This is a transaction that presents significant diversification and growth opportunities for our shareholders," said Vodacom Group CEO Shameel Joosub in an emailed statement.

"With over 80% of Egypt's 100 million population unbanked, Vodacom sees enormous potential to leverage our financial services platforms, global partnerships and best practices in a significant market," Joosub added.

Vodacom's plans were announced in November 2021 after a previous deal with Saudi Arabia's STC never came to fruition.

The current agreement is still waiting for certain approvals from the Johannesburg Stock Exchange (JSE), the National Telecom Regulatory Authority of Egypt (NTRA) and Egypt’s Financial Regulatory Authority (FRA).

Vodacom plans to fund the acquisition by issuing 242 million new ordinary shares at R135.75 (US$8.80) per share in addition to around R8.2 billion (US$548 million) in cash.

The other 45% of Vodafone Egypt is owned by Telecom Egypt, the fixed line incumbent, which is in turn 80% owned by the Egyptian government.


Want to know more about telco financials, regulation and deals in Africa? Check out our dedicated Business of Tech content channel here on Connecting Africa.


"Given the related-party nature of the transaction, Vodacom has ensured appropriate governance controls were put in place so that the deal is executed and concluded on an arm’s length basis," Vodacom said.

That is because Vodafone currently holds a 60.5% stake in Vodacom Group, and was therefore precluded from voting on the approval of the transaction at the General Meeting.

Vodacom previously said that by adding Egypt to its operations the group would cover a population of more than 500 million people across the Democratic Republic of Congo, Kenya, Lesotho, Mozambique, South Africa, Tanzania and its planned operation in Ethiopia in collaboration with Safaricom.

Related posts:

*Top image source: (jbeau on Flickr CC 2.0)

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: South Africa's Zoie Health

This month's hot startup is South African digital women's health clinic Zoie Health – a digital app that focuses on family planning, fertility and maternity care.

Story

Orange Côte d'Ivoire launches 5G lab in Abidjan

Pan-African telecoms operator, Orange, has launched a 5G lab in Côte d'Ivoire in anticipation of its 5G network rollout in 2023.

More Innovation hub

Partner perspectives

5G is lighting up the future of North Africa
By Chris Meng, VP of Huawei Northern Africa Carrier Business Department

The moving target that is telecoms fraud
By Clémentine Fournier, Regional VP Sales, Africa, BICS

How mobile operators in Africa can address signalling threats and secure the network
By Katia Gonzalez, Head of Fraud and Security at BICS

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

More AfricaCom perspectives

Latest video

More videos

Industry announcements

More Industry announcements

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Upcoming events

Africa Tech Festival
November 7-11, 2022
CTICC, Cape Town
More Upcoming events

Archived webinars

Africa Green ICT: Lighting Up a Sustainable Continent

The ICT industry is the leading industry in the commitment to carbon neutrality, whose focus has shifted from setting ambitious targets to taking initiatives. The push for zero-carbon and for green energy development, it isn't just about CSR – it's also good for sustainable business.

The path to sustainable development requires green energy. Governments are looking at potential policy approaches to make green energy more widely available and affordable. Without sustainable energy, there will be no digital transformation and no chance of making Africa more economically competitive in the post-pandemic era.

Africa Green ICT Webinar 2022 will bring together ICT industry leaders and senior industrial analysts to provide insight, best practices and key learnings on how to achieve zero-carbon targets and practice green development in Africa.

More Webinars

Sponsored video

More videos

Flash poll

All polls

Like us on Facebook

Newsletter Sign Up


Sign Up