8th Nov 2006 08:20
Vodafone Group Plc08 November 2006 8 November 2006 VODAFONE AND TELECOM EGYPT ANNOUNCE NEW STRATEGIC PARTNERSHIP Vodafone and Telecom Egypt have today announced they have entered into astrategic partnership to increase cooperation between both parties and tojointly develop a range of products and services for the Egyptian market. The highlights of the agreement, signed today in Cairo between the twocompanies, are: - The restructuring of the Vodafone Egypt Board, reflecting the new shareholding structure. - Telecom Egypt will continue to provide exclusive international gateway services for Vodafone Egypt under an extension of the current agreement. - Vodafone Egypt will extend its distribution channels for Vodafone products and services through Telecom Egypt's outlets. - Vodafone Egypt and Telecom Egypt will work together to develop service propositions for customers shared by TE Data (Telecom Egypt's retail Internet and Data arm) and Vodafone Egypt. - Where appropriate, Vodafone Egypt and Telecom Egypt may consider regional joint initiatives to work together where the combination of fixed and mobile capability will add competitive advantage. Vodafone * also intends to launch a tender offer for an additional 4.9% of theshares in Vodafone Egypt at a price of LE 100 per share for a maximum possibleconsideration of LE 1.176bn (£108m GBP **). Telecom Egypt has given anirrevocable undertaking to accept the tender in respect of at least 3.97% and upto 4.69% of the shares in Vodafone Egypt. If fully accepted, this tender offer will take Vodafone's shareholding in itsEgyptian subsidiary to 55%, with 45% held by Telecom Egypt. Subject toregulatory approvals, the tender offer is expected to be launched next week. Paul Donovan, CEO of Vodafone's EMAPA Region (Eastern Europe, Middle East, AsiaPacific and Affiliates), said: "We are very pleased to have agreed a strategicpartnership with Telecom Egypt, which further strengthens the workingrelationship both companies have as Vodafone Egypt shareholders. "The purchase of additional equity in Vodafone Egypt shows Vodafone's commitmentto the Egyptian market, which is further reinforced by our partnership withTelecom Egypt to develop and expand products and services." Akil Beshir, Chairman and CEO of Telecom Egypt added: "Today we have signed astrategic partnership which will ensure that the most cutting-edge products andservices will be available in Egypt. This move will make it possible forVodafone Egypt to take advantage of the products and services from TE Data andother parts of Telecom Egypt as well as increasing the opportunities forVodafone Egypt to sell its services through Telecom Egypt. This agreement willalso allow Telecom Egypt to maintain a substantial portion of the internationalvoice services volumes from Vodafone Egypt after the liberalisation ofinternational gateway services in Egypt". Ian Gray, CEO of Vodafone Egypt added: "Vodafone Egypt now has a strongstrategic partnership between its two major shareholders that is the basis onwhich we can tailor the global services and experience of the Vodafone Group tothe unique requirements of the Egyptian consumer. This agreement puts VodafoneEgypt on a firm footing to capture future growth in the Egyptiantelecommunications market." - ends- For further information: Vodafone Group Investor Relations Tel: +44 (0) 1635 664447Media Relations Tel: +44 (0) 1635 664444 Telecom Egypt Tarek Tantawy, CFADirector of Investment, Treasury & Investor RelationsTel: +202 5788111 Eman AnisInvestor Relations ManagerTel: +202 5788787 About Vodafone Vodafone is the world's leading international mobile telecommunications groupwith equity interests in 27 countries across 5 continents with 186.8 millionproportionate customers worldwide as at 30 June 2006 as well as 33 partnernetworks. For further information, please visit www.vodafone.com About the tender offer * Vodafone will launch the planned tender offer through its Netherlands-basedsubsidiary Vodafone Europe B.V. About Telecom Egypt Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started itsoperations in 1854 with the first telegraph line in Egypt. Then it wascorporatized in 1998 to replace the former Arab Republic of Egypt NationalTelecommunication Organization (ARENTO). The Company is the largest provider offixed-line services in the Middle East and Africa with 10.6 million subscribersas at the end of June 2006 representing a teledensity of 14.8 percent. TEprovides retail telecommunication services including access, local, longdistance and international voice, Internet and data, and other services. Thecompany also provides wholesale services including bandwidth capacity leasing toISPs, and national and international interconnection services. Telecom Egypt'sservices also include the provision of narrowband and broadband internet accessthrough its subsidiary TE Data. TE Data has current operations in Egypt andJordan. About Vodafone Egypt Vodafone Egypt is one of two current Egyptian mobile operators. The company willannounce its results for the quarter to 30 September 2006, on 8 November 2006.For more information see the Vodafone Egypt Investor Relations section atwww.vodafone.com.eg About the exchange rate used ** An exchange rate of LE 10.91 to 1 British Pound Sterling has been used This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
VodafoneTelecom Egypt S