Telecom Egypt, Vodafone Group sign a modified partnership agreement

Telecom Egypt, Vodafone Group sign a modified partnership agreement

Telecom Egypt and Vodafone Group have signed a revised shareholders’ agreement as the two telecommunications firms look to bolster their collaboration.

According to a statement, the agreement includes changes to Vodafone Egypt’s dividend policy, whereby Vodafone will pay a one-time dividend of EGP10 billion to its shareholders during the 2021 calendar year, EGP 2bn of which was paid in March.

The parties have also agreed on a minimum dividend payout ratio of 60% of free cash flow going forward.

The modified signed agreement also gives Vodafone Group the right to transfer its shareholding in Vodafone Egypt within the broader Vodafone Group.

Telecom Egypt will maintain its existing rights in the agreement and has obtained certain enhanced minority rights including access to information.

Commenting on the modified agreement, Adel Hamed, Managing Director and Chief Executive Officer at Telecom Egypt said, “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.”

He added, “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 owns a 45% stake in Vodafone Egypt. The company is the first total telecom operator in Egypt providing fixed, mobile voice and data services in the country.