The announcement of Vodafone International Group, about the signing of a memorandum of understanding, to the potential sale of its 55% stake in Vodafone Egypt to STC for 2.392 billion dollars, which is equivalent to more than 37 billion pounds, many questions among those who followed the deal, starting from the reasons for selling Vodafone has its share in Egypt, which is one of the best-performing companies, as well as the concerns of employees of the company after the deal, in addition to questions of the company’s customers about the brand and their contracts with the company.
On the seventh day, Eng. Ayman Essam, Head of the Foreign and Government Relations Sector, met with Vodafone Egypt to answer all questions from those who followed the Vodafone Egypt deal.
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1- Why did Vodafone sell its stake in Egypt?
The reason behind Vodafone’s global sale of its 55% stake in Vodafone Egypt is a strategic change in Vodafone’s global view on restructuring its investments in its companies around the world, exiting the Middle East markets and focusing in Africa, as the global company started selling its unit in New Zealand since Several months later, her unit was sold in Malta for nearly two months, followed by an offer she received from Saudi Telecom Company to sell its stake in Egypt, especially as Vodafone Egypt is the only operator of the international company in the Middle East.
2- Was Vodafone pressured to sell its stake in Egypt?
– We were not exposed to any pressure, and as I mentioned is a change in the global strategy by focusing on the markets of Europe and Africa and the exit from markets in the Middle East, and we did not ask for the purchase offer, as the Saudi company made the offer.
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3- What is the fate of Telecom Egypt’s share in Vodafone Egypt?
– Telecom Egypt owns 45% of Vodafone Egypt, and according to the shareholders agreement between Vodafone International and the Egyptian Telecom, the latter has the right of pre-emption, and this right begins since the notification of Telecom Egypt with a final price for the share and the final form of the deal, because in order to use “Telecom Egypt” the right of pre-emption must It must submit a similar offer at 100%, and therefore before the completion of the formation of the final deal form, it will not be presented to Telecom Egypt, because the current evaluation is preliminary, and a negation examination will be carried out for ignorance of the final evaluation, and submit a final offer.
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There is a period of time for pre-emption, in accordance with the shareholders agreement, and it has the right to use it or not.
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4- Will the Vodafone Egypt trademark be changed?
The Memorandum of Understanding includes continuing to use the Vodafone brand, premium roaming agreements, taking advantage of prices and central purchasing agreements for Vodafone International, and a host of other services. This agreement guarantees Vodafone Egypt to continue to provide innovative technological products and solutions to its customers in the corporate and individual sectors.
5- Does this mean discounting the trademark exploitation from the transaction price?
– It will have a special trade agreement between Vodafone International and STC away from the announced deal.
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6- As for Vodafone Egypt employees … will you be affected by the deal?
– Vodafone Egypt employees or management will never be affected by the deal, and this was a condition for Vodafone International.
7- How was Vodafone Egypt’s share valued at $ 2.392 billion?
– No evaluation has been conducted, and the whole thing is that there is a potential buyer who wants to acquire Vodafone’s global stake in Vodafone Egypt, and therefore he made an offer in accordance with his appreciation for the Vodafone Global Group, which considered that this value is appropriate, provided that it begins to sign a memorandum of understanding and enter into the negative examination For ignorance.
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The total evaluation of Vodafone Egypt is 4.35 billion dollars, equivalent to 16.312 billion Saudi riyals, and the share of Vodafone International, 55% in Vodafone Egypt, is equivalent to 2.392 billion dollars equivalent to 8.970 billion Saudi riyals.
The final financial compensation has not been determined for the Vodafone Egypt deal, and the compensation will be resolved upon signing the final agreements during the month of June, after the completion of the negation inspection for a period of 75 days, which can be extended with the consent of the two parties, while no binding agreement has been concluded between the company and Vodafone regarding the potential acquisition. .
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