Vodafone and Telecom Egypt announce new partnership

Vodafone and Telecom Egypt today announced they have entered into a strategic partnership to increase cooperation between them and to develop a range of products and services for the Egyptian market.

The highlights of the agreement 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 also intends to launch a tender offer for an additional 4.9% of the shares in Vodafone Egypt at a price of LE100 per share for a maximum possible consideration of LE1.176bn (€161bn).

Telecom Egypt has given an irrevocable undertaking to accept the tender in respect of at least 3.97% and up to 4.69% of the shares in Vodafone Egypt.