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Telecom Egypt, Vodafone pen revised agreement over joint venture

By , ITWeb
Egypt , 10 Jun 2021

Telecom Egypt and Vodafone Group have signed a revised Shareholders’ Agreement, after nearly three years of negotiating a settlement regarding their joint venture Vodafone Egypt.

According to a statement released to the media, legal firm Al Tamimi & Company advised Telecom Egypt on renegotiating aspects of the shareholder’s current agreement between Vodafone Group.

“The amended and restated shareholder’s agreement is mainly targeting the mutual protection for the corporate domination and exit rights of both parties,” reads an excerpt from the statement.

The agreement thoroughly stated certain variations to Vodafone’s payment policy, the statement continued.

Regarding payment terms, Vodafone Egypt already paid 2 billion EGP last March and still has to pay a dividend of 10 billion EGP to its shareholders during this year.

Going forward both parties have agreed on an extra 60% of free cash flow.

Ehab Taha, Partner and Head of Corporate Commercial, commented: “We are pleased to have advised Telecom Egypt on this amended shareholders agreement. This agreement enhances the rights of Telecom Egypt as a shareholder in Vodafone Egypt for Telecommunications and sets the way forward for a true partnership between Telecom Egypt and Vodafone Group for future years to come. The new agreement will lead to further stability and enhancement in the mobile telecommunication market in Egypt.”

The companies assert that further developments after the restated signed agreement has been announced, Vodafone Egypt will have the accessibility to transfer its data within the wider Vodafone Group.

TE still has its existing rights in the agreement and has obtained other superior rights, including access to information. 

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