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(Alliance News) - Vodacom Group Ltd announced on Tuesday its shareholders had approved the proposed acquisition of a 55% stake in Vodafone Egypt from Vodafone Group PLC.
Vodafone Egypt is 55% held by Vodafone and provides telecommunication services in Egypt to around 43 million customers. The remaining 45% is held by Telecom Egypt.
At a general meeting held on Tuesday, up to 99% shareholders voted in support of the proposed USD2.74-billion acquisition.
Vodacom will fund 80% of the acquisition through the issue of 242.0 million new shares at a price of ZAR135.75 each, which will increase Vodafone's shareholding in Midrand-based Vodacom from 61% to 65%.
The remaining USD548 million is to be settled through cash.
The remaining conditions of the deal include the JSE approval. Vodacom must also get green light from the National Telecom Regulatory Authority of Egypt for the transfer of the sale shares to Vodacom from Vodafone.
No competition approval is required in Egypt or South Africa with only a post-closing notification required in Egypt.
Vodacom has said said the acquisition will allow the company to advance its strategic connectivity and ambitions in Africa, and expects the addition of Vodafone Egypt to accelerate its medium-term operating profit growth potential into double digits.
Shares in Vodacom fell slightly by 0.2% to ZAR135.40 on Tuesday afternoon in Johannesburg. Vodafone was 2.7% higher in London at 122.06p.
By Artwell Dlamini; artwelldlamini@alliancenews.com
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