08 Jun 2021

ETEL (Telecom Egypt) and Vodafone International have signed an amended shareholders’ agreement that modifies Vodafone Egypt’s dividend policy. The new agreement entails Vodafone Egypt paying exceptional dividends of about EGP10bn in 2021. On top of that, a minimum has been set for future dividends at 60% of Vodafone Egypt’s free cash flow. The agreement also gives Vodafone International the right to transfer its share in Vodafone Egypt to other entities within the Vodafone International Group. As for ETEL, they now have the right to obtain more detailed information about their investment in Vodafone Egypt. ETEL owns 45% of Vodafone Egypt, with the remainder belonging to Vodafone International.

The Minister of Communication and Information Technology witnessed the signing of the agreement. He emphasized its strategic benefits, saying that it will have a positive impact on the Egyptian telecommunications industry as it improves compatibility between both companies. The agreement is seen as beneficial by both parties. ETEL sees it as guaranteeing their partnership with Vodafone, and gives it better visibility on its investment while providing more confidence to its shareholders. Vodafone considers the agreement a basis to continue investing and growing their business in Egypt, while also allowing for more innovation in their offerings. Both parties agree that the ultimate goal is for them to work together as they contribute to achieving the government’s vision for digitization and financial inclusion. (Source: Daily News Egypt (English), CNBC Arabia, al-Arabiya, al-Youm al-Saabe, al-Masry al-Youm)