Telecom Egypt’s WE will gain a profit of EGP 4.5 billion based on the agreement with Vodafone, said Ayman Essam, Head of External and Government Relations and Legal Affairs at Vodafone Egypt.
WE received EGP 2 billion that disbursed last March, and it is expected to receive another EGP 2.5 billion by the end of this month subject to the approval of the general assembly of Vodafone Egypt.
WE own 45% of Vodafone Egypt while Vodafone International owns 55%.
Recently, Telecom Egypt and Vodafone International Group signed an amended shareholder agreement on some financial and investment transactions in Vodafone Egypt. The parties have also agreed on a minimum dividend payout ratio of 60% of free cash flow going forward.
Adel Hamed, Telecom Egypt’s Managing Director and Chief Executive Officer, commented, “We are pleased to have reached an agreement that is mutually beneficial to both parties. Telecom Egypt has been and continues to be a strategic partner to Vodafone Group in the Egyptian market. This agreement guarantees the preservation of our strategic partnership in light of an enhanced shareholders’ agreement that provides Telecom Egypt with visibility on its investment and its expected returns based on Vodafone Egypt’s performance and gives our shareholders comfort that our participation in the company continues to be fruitful and rewarding. Telecom Egypt plans to utilize the cash inflow from the dividend to be received in 2021 to deleverage its balance sheet, reduce financing expenses and enhance profitability.”
Telecom Egypt is an Egypt-based joint-stock company, which is engaged in the provision of public communications and associated products and services.
The company operates under the following segments: communications, marine cables, and infrastructure; internet services, as well as outsourcing services. It offers a range of fixed-line and retail telecommunications services, as well as wholesale telecommunications services.
