Qatari wealth fund angling for Vodafone Egypt stake

Qatari wealth fund angling for Vodafone Egypt stake

The Qatar Investment Authority is reportedly in advanced negotiations with the Egyptian government to acquire around US$2.5bn of state holdings in various firms, including market-leading mobile operator Vodafone Egypt.

Daily News Egypt reports that the proposal is likely to be finalised by the end of 2022, and will see QIA acquire a 20% stake in Vodafone Egypt. Bloomberg notes that the QIA is Qatar’s sovereign wealth fund, overseeing assets worth around US$445bn.

The Egyptian government holds a 45% stake in Vodafone Egypt via state provider Telecom Egypt, which obtained the holding in 2017. In a stock exchange filing yesterday (19th October), Telecom Egypt indicated that it had not received an official offer for the purchase of any shares in Vodafone Egypt.

UK-based Vodafone Group holds the remaining 55% stake in Vodafone Egypt, although it is currently attempting to sell the holding to its South African subsidiary Vodacom Group for $2.7bn. The deal requires approval from Egypt’s National Telecommunications Regulatory Authority – which was reportedly granted last month – as well as the Financial Supervision Department of the Reserve Bank of South Africa.

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