Vodafone Group has agreed to transfer its 55 percent stake in Vodafone Egypt to Vodacom Group, its sub-Saharan African subsidiary.
This transfer simplifies the management of Vodafone’s African holdings and strengthens the delivery of connectivity and financial services in Africa.
The transaction values Vodafone’s 55 percent stake in Vodafone Egypt at €2,722 million on a debt free, cash free basis, implying a multiple for the last twelve month period ended 30 September 2021 of 7.3x Adjusted EBITDAaL and 12.2x Adjusted OpFCF.
Based on Vodafone’s 55 percent share of the net debt in Vodafone Egypt the total equity consideration is €2,365 million. Approximately 80 percent of the Purchase Consideration (€1,892 million) will be settled by the issue of 242 million new ordinary Vodacom shares to Vodafone at an issue price of ZAR 135.75 per share. As a result, Vodafone’s ownership in Vodacom will increase from 60.5 percent to 65.1 percent. The remaining 20 percent of the Purchase Consideration (€473 million) will be settled in cash.