Vodafone Group has officially announced that it has signed a memorandum of understanding (MoU) to sell its 55% stake in Egypt to Saudi Arabia telecom operator STC for $2.4 billion.
The two companies also agreed to enter a new phase of long-term agreement, by which, the Saudi company will use Vodafone brand, preferential roaming arrangements, access to Vodafone’s central procurement function, and other services.
This agreement includes that Vodafone Egypt continues to provide innovative technology products and solutions to its clients in the corporate and inpidual sectors.
Vodafone will continue to have a significant presence in Egypt through its Shared Services centers, recently re-branded as VOIS (Vodafone Intelligent Solutions).
The centers in Cairo, Giza and Alexandria employ around 7,800 people and provide services to Vodafone’s operations around the world, as it also has plans to recruit at least 1,000 more people over the coming 12-18 months.
On his part, Vodafone CEO Nick Read said that the agreement is consistent with the group’s efforts to maximize investments in global markets, especially in Europe and Africa markets and reduce the company’s net debt and unlock value for its shareholders
The agreement is expected to close by June. STC said the non-binding agreement was valid for 75 days from Wednesday and could be extended by mutual consent.
“Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuing success,” said STC Chief Executive Nasser al-Nasser.
STC, also known as Saudi Telecom, is majority owned by Saudi Arabia’s state fund the Public Investment Fund (PIF).
Telecom Egypt, which owns a stake in Vodafone Egypt, said on Sunday it had no intention of selling its stake.
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