Vodafone Egypt has lined up EGP9.5 billion ($1.25 billion) to invest in its network across the next 3 years, despite its shareholder Telecom Egypt’s planned sale of its 45% stake.
The operator aims to acquire new infrastructure and modernise its base stations in order to expand nationwide coverage, said CEO Ahmed Essam.
“This is a huge investment in comparison to what we used to spend,” he said. “By end of this fiscal year in March, we would have spent more than EGP3 billion, which equals one third of the allocated investments and also more than 30 per cent of our yearly revenues in Egypt.”
Vodafone holds a 55% stake in the market leading operator. Telecom Egypt – the country’s fixed incumbent – is selling its holding in Vodafone Egypt after being granted a Unified Licence which will allow it to provide mobile services alongside its fixed offering.
Telecom Egypt intends to divest this stake by the end of the year, and is currently attempting to choose a bank to handle the sale. Currently, its options are either Lazard & EFG-Hermes Holding, or JP Morgan Chase & Co. It has been deliberating since last year.