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Vodacom Group Ltd said on Tuesday it had completed the acquisition of 55% stake in Vodafone Egypt Telecommunications SAE from Vodafone Group PLC for around R 42.64 billion in cash and shares.
The Midrand-based mobile communications firm confirmed that all suspensive conditions had been fulfilled or waived, and the deal had become unconditional.
Vodacom settled this acquisition through the issuance of 241.9 million new shares and cash proceeds of £577 million, or R 10.81 billion. Each new share is worth R 135.75.
Following completion of this transaction, Vodafone’s shareholding in Vodacom Group has increased from 60.5% to 65.1%.
Vodacom said it expects to consolidate Vodafone Egypt over the remainder of the financial year.
In a separate statement, Vodafone said this deal simplified the group’s African assets.
‘Vodacom gains exposure to another leading business in an attractive market, diversifying its portfolio and accelerating its growth profile. Vodafone Egypt will benefit from closer co-operation with Vodacom, enabling it to accelerate growth in financial services and the Internet of Things,’ said Vodafone Chief Executive designate Margherita Della Valle.
Vodacom intends to provide an update on its medium-term growth outlook, with the trading update for the quarter that ended December 31, to be published on or about January 31.
Vodafone Egypt provides telecommunication services in Egypt to around 43 million customers. The remaining 45% is held by Telecom Egypt.
Shares in Vodacom were up 0.4% at R 128.86 on Tuesday morning in Johannesburg. Shares in Vodafone were up 0.1% at 86.80 pence in London.
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