A Bloomberg report revealed that the Qatar Investment Authority is negotiating with the government-owned Telecom Egypt to buy a stake in Vodafone Egypt.
According to the report, a maximum share of 25 percent of Vodafone Egypt shares will be purchased out of the total 45 percent owned by Telecom Egypt.
Telecom Egypt denied reports regarding the Qatari sovereign fund negotiating the purchase of part of its stake in Vodafone Egypt.
Telecom Egypt said, in a statement to the stock exchange it sent on Monday, that it had not received any official offers regarding its stake in Vodafone Egypt.
It explained that once the offers are received, it would conduct examinations and evaluations in cooperation with financial and legal advisors.
The company explained that Vodafone Egypt’s ownership structure is divided between 55 percent for the British Vodafone Group, and 45 percent to Telecom Egypt.
The Egyptian government owns 80 percent of Telecom Egypt shares, the largest telecom operator in the country, and Vodacom, owned by Vodafone International, owns 55 percent of Vodafone Egypt.
The Qatari wealth fund owns stakes in some of the world’s largest companies including the London Stock Exchange Group, Volkswagen, and Glencore Mining and Trading.
Four mobile phone service companies operate in Egypt: Vodafone Egypt, a subsidiary of the British Vodafone Group, Orange Egypt, a subsidiary of the French Orange Group, Etisalat Egypt, a subsidiary of the UAE’s Etisalat, and the government’s Telecom Egypt.
