Last checked at 
(Alliance News) - Vodafone Group PLC on Monday signed a modified shareholder agreement with Telecom Egypt, which includes changes to Vodafone Egypt's dividend policy.
Vodafone owns 55% of the the joint venture, while Telecom Egypt has 45%.
Back in December, Vodafone ended its discussions with Saudi Telecom Co for the sale of its stake. At the start of 2020, Vodafone had announced a deal to sell the majority interest in its Egypt business to Saudi Telecom for USD2.39 billion, giving Vodafone Egypt an enterprise value of USD4.35 billion.
On Monday, Vodafone and Telecom Egypt said Vodafone Egypt will pay a one-time dividend of EGP10 billion, around GBP449 million, to its shareholders during the 2021 calendar year. Of this, EGP2 billion was paid earlier in March.
The two partners also agreed on a minimum dividend payout ratio of 60% of free cash flow going forward.
The agreement also gives Vodafone the right to transfer its shareholding in Vodafone Egypt within the broader Vodafone Group.
Telecom Egypt maintains its existing rights in the agreement and has obtained some enhanced minority rights including access to information.
Telecom Egypt Managing Director & Chief Executive Adel Hamed commented: "We are pleased to have reached an agreement that is mutually beneficial to both parties.
"Telecom Egypt has been and continues to be a strategic partner to Vodafone group in the Egyptian market.
"This agreement guarantees the preservation of our strategic partnership in light of an enhanced shareholders' agreement that provides Telecom Egypt with visibility on its investment and its expected returns based on Vodafone Egypt's performance and gives our shareholders comfort that our participation in the company continues to be fruitful and rewarding."
Vodafone shares were 0.9% higher in London at midday on Monday at 129.03 pence each.
By Will Paige; willpaige@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.
