South Africa’s Vodacom to acquire 55% stake in Vodafone Egypt for $2.74

South Africa-based telecommunications company Vodacom Group Ltd said on Wednesday it intends to buy a 55 percent stake in the Egyptian arm of Vodafone Group for $2.74 billion.

Vodacom said in a statement it plans to settle 80 percent of the price by the issue of new shares, with the $548 million balance settled in cash.

“The proposed acquisition presents a unique opportunity to advance Vodacom Group’s strategic connectivity and financial services ambitions in Africa by acquiring a controlling interest in Vodafone Egypt, one of Africa’s premier telecom operators,” Vodacom South Africa-based telecommunications company Vodacom Group Ltd

Vodafone Egypt, which is part of Vodafone Group PLC, is the country’s largest mobile network operator. Thus, the deal is expected to diversify and accelerate Vodacom Group’s medium-term operating profit growth potential into double digits,” Vodacom statement read.

“The proposed acquisition presents a unique opportunity to advance Vodacom Group’s strategic connectivity and financial services ambitions in Africa by acquiring a controlling interest in Vodafone Egypt, one of Africa’s premier telecom operators,” it added.

It would also expand Vodacom Group’s reach to 37,000 network sites, making it one of Africa’s largest tower owners, the company noted.

The deal will combine 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.