Vodafone Egypt prepares investment as Telecom Egypt lines up stake sale

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.


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.