Shareholders have given Vodacom’s proposed R41-billion (US$2.738-billion) deal to acquire a 55% stake in Vodafone Egypt the official thumbs up on resolutions following a general meeting today.

According to a statement released by Vodacom, subject to the final outstanding regulatory approvals, it will fund the acquisition of Vodafone Group plc’s 55% stake in Vodafone Egypt by issuing 242 million new ordinary shares at R135.75 per share in addition to around R8.2-billion (US$548-million) in cash.

In November 2021 Vodacom Group CEO Shameel Joosub said that the deal would “cement Vodacom Group’s position as Africa’s leading techno by advancing our strategic connectivity and financial services ambitions while increasing our total population coverage on the continent to over half a billion people and more than 40% of Africa’s GDP.”

Commenting after the shareholders’ vote, Joosub said: “This is an exciting and important milestone for Vodacom as the acquisition of Vodafone Egypt will be transformational in our evolution from a telco to a techco. This is a transaction that presents significant diversification and growth opportunities for our shareholders. With over 80% of Egypt’s 100 million population unbanked, Vodacom sees enormous potential to leverage our financial services platforms, global partnerships and best practices in a significant market.”

Vodacom continues to work towards closing the transaction before the end of its financial year March 2022.

“However, the deal remains conditional upon receipt of certain approvals from the JSE, the National Telecom Regulatory Authority of Egypt (NTRA) and Egypt’s Financial Regulatory Authority (FRA),” the operator added.

It also said that given the related-party nature of the transaction, Vodacom has ensured appropriate governance controls were put in place so that the deal is executed and concluded on an arm’s length basis.

“As a result, Vodafone, which currently holds a 60.5% stake in Vodacom Group, was precluded from voting on the approval of the transaction at the General Meeting.”

Resolutions approved include approval of the transaction: 99% in favour, approval of the consideration shares: 99.58% in favour, and special resolution – granting authority to issue consideration shares to the sellers: 99.58% in favour.