Vodacom buys 55% stake in Vodafone Egypt

South Africa’s Vodacom Group Limited has agreed to buy 55% stake in Vodafone Egypt. The deal captures growth in a fast-growing information communications and technology market.

Vodacom operates in 7 countries including South Africa, Tanzania, the Democratic Republic of the Congo (the DRC), Mozambique, Lesotho and Kenya. With a mobile population of over 295.8 million people.

Deal details

The transaction values Vodafone’s 55% shareholding in Vodafone Egypt at €2,722 million on a debt free, cash free basis, implying a multiple for the last twelve month period ended 30 September 2021 of 7.3x Adjusted EBITDAaL and 12.2x Adjusted OpFCF2.

Based on Vodafone’s 55% share of the net debt in Vodafone Egypt as at 30 September 2021 the total equity consideration is €2,365 million (the “Purchase Consideration”). Approximately 80% of the Purchase Consideration (€1,892 million) will be settled by the issue of 242 million new ordinary Vodacom shares to Vodafone at an issue price of ZAR 135.75 per share. As a result, Vodafone’s ownership in Vodacom will increase from 60.5% to 65.1%.