The Qatar Investment Authority is reportedly in advanced negotiations with the Egyptian government to acquire around US$2.5bn of state holdings in various firms, including market-leading mobile operator Vodafone Egypt.
Daily News Egypt reports that the proposal is likely to be finalised by the end of 2022, and will see QIA acquire a 20% stake in Vodafone Egypt. Bloomberg notes that the QIA is Qatar’s sovereign wealth fund, overseeing assets worth around US$445bn.
The Egyptian government holds a 45% stake in Vodafone Egypt via state provider Telecom Egypt, which obtained the holding in 2017. In a stock exchange filing yesterday (19th October), Telecom Egypt indicated that it had not received an official offer for the purchase of any shares in Vodafone Egypt.
UK-based Vodafone Group holds the remaining 55% stake in Vodafone Egypt, although it is currently attempting to sell the holding to its South African subsidiary Vodacom Group for $2.7bn. The deal requires approval from Egypt’s National Telecommunications Regulatory Authority – which was reportedly granted last month – as well as the Financial Supervision Department of the Reserve Bank of South Africa.