Back to the complete issue
Monday, 9 November 2020

Vodafone Egypt chief confirms sale talks are still on, says VFE will make full use of new spectrum in 18-24 months

INVESTMENT WATCH- Vodafone Egypt chief confirms sale talks are still on, says VFE will make full use of new spectrum in 18-24 months. Vodafone Egypt expects to maximize the usage of its new frequencies within the next 18-24 months, CEO Mohamed Abdallah said at a press conference yesterday, according to Al Mal. The company is still waiting to receive the two 20-MHz bands it recently purchased from the regulator for USD 540 mn, Abdallah said, adding that the new spectrum will be used to increase data usage and improve voice services.

Vodafone will not be seeking a loan to fund the purchase, the CEO said. The company will pay 50% of the amount in USD, and 25% in each of the coming two years in USD or EGP equivalent, said External Affairs and Legal Director Ayman Essam.

Telecom Egypt and Etisalat Misr also picked up spectrum in the recent auction. Etisalat Misr picked up two 10-MHz bands for USD 325 mn while Telecom Egypt bought a similar package at a discounted price of USD 305 mn.

Meanwhile, acquisition talks between Vodafone Group and Saudi Telecom (STC) are continuing, Abdallah said, without providing further details. The two companies vowed to continue talks in September after STC was unable to agree a price with Vodafone by the deadline set by a MoU signed in January. The Saudi company initially submitted a non-binding bid of USD 2.39 bn for the 55% stake, but talks to reduce the valuation later broke down. Telecom Egypt, which owns the remaining 45% of the company, could be about to exercise its right of first refusal, with sources telling the press in September that five banks are on board to finance its purchase of Vodafone Group’s stake

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.