Vodafone International is currently in negotiations to sell Vodafone Egypt, with the value of the sale estimated at approximately LE24.3 billion, revealed the Financial Times.
Although Vodafone Egypt declined to reveal the companies involved in the negotiations, Bloomberg–a business news network–said the company was Telecom Egypt.
Negotiations to sell 55 percent of Vodafone Egypt’s shares to Telecom Egypt began a while ago, said the Financial Times. Khaled Hegazi, head of foreign relations at Vodafone said the negotiations have yet to be concluded.
Telecom Egypt previously announced its desire to receive a permit to become a mobile service operator, after its profits declined sharply as a result of intense competition with Egypt’s mobile operators. However, the Ministry of Communications never responded to Telecom Egypt’s request.
If Telecom Egypt acquires Vodafone Egypt, it will be the only company in Egypt that operates both landline and mobile services. Such a position could prove troublesome for Mobinil and Etisalat, the other two mobile service operators in Egypt.
The company is keen on entering the mobile phone market, said Tarek Tantawi, an official from Telecom Egypt. However, he did not confirm the company’s offer to acquire Vodafone Egypt.
The company is currently examining alternatives to increase its share in the mobile phone market, either by acquiring a share of Vodafone Egypt or by receiving a license to become the fourth mobile phone operator in Egypt, Telecom Egypt said yesterday in a statement issued by the company.
Translated from the Arabic Edition.
