Qatar Investment Authority Eyes Full Acquisition of Vodafone Egypt Stake from Telecom Egypt

According to sources in the mobile market, the Qatar Investment Authority (QIA) is targeting the acquisition of Telecom Egypt’s entire stake in Vodafone Egypt.

It has been reported that negotiations between the parties have been renewed, with the focus on the government’s 45% stake in Vodafone Egypt. The Qatari sovereign fund seeks to acquire the complete government share, while the government is considering selling only a portion, leading to ongoing discussions for several months.

It is rumored that the Qatari Sovereign Fund may utilize one of its specialized subsidiaries to execute the deal, followed by the acquisition of the remaining stake held by South African company Vodacom.

Sources disclosed that the deal may be implemented in two phases. The initial phase aims to obtain all or part of Telecom Egypt’s stake in Vodafone Egypt, allowing the QIA to gain representation on the company’s board of directors and understand the local market’s dynamics and competition. Subsequently, negotiations will be initiated with Vodacom to acquire its share.

The sources anticipate the deal’s conclusion before 30 June, as the Egyptian government actively seeks investments worth $2 billion.

The Qatari fund’s interest in acquiring all of Telecom Egypt’s shares in Vodafone Egypt signifies a strategic move to establish a strong presence in the local market through a leading operator, considering Egypt as an important market.

Presently valued at $3 billion, Vodafone Egypt’s market worth has decreased from $5 billion before the previous flotation. Telecom Egypt’s stake in Vodafone Egypt is presently estimated to be between $1.2 billion and $1.3 billion.

In October last year, the Qatar Investment Authority engaged in advanced talks to acquire a 20% stake in Vodafone Egypt from Telecom Egypt, although no official offer was received at that time for Qatar’s investment of approximately $2.5 billion.