Vodacom Group Ltd said on Wednesday it would buy a 55% stake in the Egyptian arm of parent Vodafone Group Plc for $2.74 billion, as it looks at consolidate its presence on the continent and boost profit.
Vodacom had been vying with rival MTN Group for market share as the continent's people and businesses demand higher speeds and better connectivity to access financial services, entertainment, education and enterprise solutions, especially spurred by the coronavirus pandemic.
The deal combines South Africa's largest mobile operator with Egypt's telecom market leader, strategically positioning Vodacom to capture growth in a fast-growing information communications and technology market. "It is expected to diversify and accelerate Vodacom Group's medium-term operating profit growth potential into double digits," it added.
Telecom Egypt, which holds 44.94% of Vodafone Egypt, said on Wednesday it had received notice from the company's management of an offer to transfer the majority stake to Vodacom.
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