Vodafone Increases Egyptian Investment

Vodafone has announced that it is planning to take management control of its Egyptian subsidiary, Vodafone Egypt. The company is buying just under five percent of Vodafone Egypt from Telecom Egypt, and will end up with a 55% stake in the company.

Paul Donovan, CEO of Vodafone's EMAPA Region (Eastern Europe, Middle East, Asia Pacific and Affiliates), said: "We are very pleased to have agreed a strategic partnership with Telecom Egypt, which further strengthens the working relationship both companies have as Vodafone Egypt shareholders.

"The purchase of additional equity in Vodafone Egypt shows Vodafone's commitment to the Egyptian market, which is further reinforced by our partnership with Telecom Egypt to develop and expand products and services."

Akil Beshir, Chairman and CEO of Telecom Egypt added: "Today we have signed a strategic partnership which will ensure that the most cutting-edge products and services will be available in Egypt. This move will make it possible for Vodafone Egypt to take advantage of the products and services from TE Data and other parts of Telecom Egypt as well as increasing the opportunities for Vodafone Egypt to sell its services through Telecom Egypt. This agreement will also allow Telecom Egypt to maintain a substantial portion of the international voice services volumes from Vodafone Egypt after the liberalisation of international gateway services in Egypt".

The two companies have also signed a new strategic partnership to increase cooperation between both parties and to jointly develop a range of products and services for the Egyptian market.

Telecom Egypt will continue to provide exclusive international gateway services for Vodafone Egypt under an extension of the current agreement. Vodafone Egypt will also extend its distribution channels for Vodafone products and services through Telecom Egypt's outlets.

Where appropriate, Vodafone Egypt and Telecom Egypt may consider regional joint initiatives to work together where the combination of fixed and mobile capability will add competitive advantage."

Posted to the site on 9th November 2006