Vodafone ready to buy Telecom Egypt out of Vodafone Egypt

Vodafone has expressed interest in buying out the stake in its Egyptian joint venture with Telecom Egypt, sending the landline monopoly’s share price surging to its highest level since early this year.

Vodafone Egypt is a joint venture between the two companies, with Telecom Egypt owning a 45 per cent stake in the company. The stake has been valued at around US$2 billion.

There have been expectations that Telecom Egypt may sell its stake for the past year or so ever since the telecom regulator said it would grant the landline monopoly an MVNO licence to start offering its own mobile services.

Vodafone is now ready to buy the 45 per cent stake, an official at the company told Bloomberg News, declining to be identified because he is not authorised to comment on the matter.

Telecom Egypt is listed on the local stock exchange, but is 80 per cent owned by the government.