CAIRO: Vodacom Group Ltd will acquire a majority stake in Vodafone Egypt from London-listed parent company Vodafone Group PLC for $2.74 billion, expanding the carrier into Northern Africa for the first time.
The deal will see Johannesburg-based Vodacom own 55 percent of the Egyptian market leader. The sale means Vodafone Group will no longer have any direct ownership of Vodafone Egypt.
Some 80 percent of the payment will be settled in new Vodacom shares, while the rest will be paid in cash, according to a statement released on Wednesday.
Vodafone Global has estimated its stake in Vodafone Egypt at $2.74 billion, which means Vodafone Egypt's total value is estimated at $4.9 billion.
Telecom Egypt, the fixed-line incumbent, owns the remaining 45 percent of the company.
Vodacom Group is more than 60 percent owned by Vodafone Group Plc.