Vodafone Egypt makes first stake buys in Bee + Masary: Vodafone Egypt has acquired 10% stakes in e-payment platforms Bee and Masary, subsidiaries of non-banking financial services (NBFS) provider Ebtikar, according to a disclosure (pdf) filed to the EGX yesterday by Ebtikar parent company B Investments. The telecoms giant — which plans to eventually acquire a 20% stake in each firm — subscribed to a capital increase at par value, reducing Ebtikar’s ownership in Bee to just over 90% and its stake in Masary to 63.6%.

A year in the making: The transaction comes under the terms of an MoU signed between the two companies in early 2021 under which Vodafone signaled its intent to acquire 20% of Bee and Masary. The telecom operator wrapped up due diligence on the companies in August.

Vodafone is still planning to acquire 20% of each company: A Vodafone Egypt representative told us yesterday afternoon that it is sticking to the MoU and still intends to acquire 20% of both firms. The acquisition is taking place in two phases, and Vodafone will purchase the remaining 10% stakes after receiving final regulatory approvals, the official said.

What’s in it for Bee and Masary? The two firms “will have access to know-how, new products, market expertise and the facilitation of regional expansions,” B Investments IR Director Omar El Labban told Enterprise. “Bee and Masary are expected to benefit from expedited growth and play an even more expanded and major role in the digital transformation of the economy,” he said. Ebtikar is a joint venture between B Investments, BPE Partners and MTI.

And for Vodafone? The acquisition comes as part of the company’s plans to increase investments in Egypt and expand its footprint in the NBFS space.

Advisors: Zaki Hashem & Partners advised Masary and Bee, while Vodafone was advised by Hafez & Partners.

IN OTHER M&A NEWS-

Has Ashry Steel just taken over Arco Steel? That’s what Al Mal reported yesterday, citing “well informed sources” as saying that the company had acquired all of the company’s shares for EGP 2 bn. Ashry Steel Chairman Ayman El Ashry denied the report when we approached him for comment yesterday. “The transaction remains under discussion, which has reached an advanced stage,” he told us. Arco Steel is 80% owned by the National Bank of Egypt and the remaining 20% is distributed among state-affiliated entities such as the National Investment Bank, the Industrial Development Bank and Misr Ins. Talks on the acquisition have been ongoing since at least last summer.