Vodacom Group Pursues Continental Growth With Vodafone Egypt
Passion, Purpose, Plan and pursuit are pretty important in starting up and sustaining the growth of an idea. Many businesses have come to acknowledge the factors and run with them thereby resulting in amazing feats. Recently there has been an irresistible buzz in the media. A relatively big company seems now to control the tides of an actual big company. When these factors are taken note of, the result can be amazing.
The Vodacom News
A South-African-based telecommunication company, Vodacom Group Ltd, has acquired 55% of Egypt’s leading telecommunication platform, Vodafone Egypt. The news did not come as a surprise as Vodacom had a year ago expressed interest in Vodafone.
In as much as both companies reached an agreement to the acquisition a year ago, the finalities were delayed. Several essential factors, such as shareholder and regulatory agreement, were finally approved to see the acquisition a reality.
Vodacom had purchased the stake with a total of US$614 million this is as against its previous proposal of US$2.7 billion. There was also the issuance of about 242 million new Vodacom Group shares.
Vodacom Before Vodafone
Vodacom. The South African-originated telecommunication company has been on the move on within its niche. This telecom service has been active in the South of the continent since 1994. It was accessible in Mozambique and Lesotho first then up in Tanzania, the Democratic Republic of the Congo (DRC), Kenya and now Egypt.
While being present in notable African nations, the mobile phone operator has gained significance. It seems it has a specific eye for Egypt now as it chased its acquisition for such a long period. This acquisition gives it access to the North African population. There are also other initiatives for location accessibility by the company, as it collaborates with the tech giant Alibaba group. Vodacom plans to launch Vodapay one of its latest initiatives in Egypt.
With a large customer base of 16 million users in South Africa alone, access to Egypt’s population of 104 million is enough market potential.
Vodacom With The Acqiured
Acquiring more than half of the stake of Egypt’s top telecommunications company is not a small feat. Vodafone currently controls about 43% of the nation’s telecom market, a market Vodacom can access now. There are also various benefits of portfolio diversification and growth acceleration in financial services.
While speaking about the acquisition, the Managing Director and Deputy Head of EFG Hermes’ Investment Banking division, Maged El Ayouti, said, “We are incredibly proud to have been part of this prominent transaction, managing and delivering flawless execution. The transaction marks as one of the largest M&A transactions ever in Egypt’s history and one of the largest M&As in MENA this year, and follows a strong year for our advisory practice leading several regional and local M&A, equity, and debt transactions.”
“This transfer simplifies the management of Vodafone’s African assets. Vodacom gains exposure to another leading business in an attractive market, diversifying its portfolio and accelerating its growth profile,”
This was revealed by the company in a different statement, Vodacom said, “This transfer simplifies the management of Vodafone’s African assets. Vodacom gains exposure to another leading business in an attractive market, diversifying its portfolio and accelerating its growth profile.”