Cairo on 30 January 2020
With regard to the announcement made by Vodafone Global Enterprise about signing an MoU with the Saudi Telecom Company (STC) in relation to a potential sale of Vodafone’s 55% shareholding in Vodafone Egypt to STC, the National Telecom Regulatory Authority (NTRA) confirms that in case this potential acquisition is completed, Vodafone is bound to take NTRA’s prior written approval for any deals that leads to any change of its legal entity or the proportion of the shareholders' shares within the company as per the terms set by the NTRA’s Board of Directors. In addition, the NTRA highlights the fact that it has the right to take all measures and actions in order to protect national security and the public interest of the country, taking into consideration the preservation of competitive market and consumers’ protection, pursuant to the provisions of Telecom Regulation Law No. 10 of 2003 and the terms and condition of the license that was awarded by the NTRA to the company and accordingly, has been providing mobile phone services in Egypt since 1998.
Although the NTRA’s policy entails its noninterference in the commercial deals and transactions between companies as per the rules of the free market economy, nevertheless NTRA stresses that the finalization of the agreement between the two parties is conditioned on the submittal of this agreement thereto for final approval to ensure the preservation of the rights of telecom service users to high quality of services not affected by any measures taken on the one hand, and the protection of our country’s rights on the other hand.
The NTRA also states clearly that the decision of Vodafone Global Enterprise to sell its stake in Vodafone Egypt pertains to its strategy worldwide. This explains the Company's recent exit from several major markets, however the company will continue its provision of other services, mainly data centers and centers of excellence as well as Vodafone's global contracts concluded in the universal health insurance scheme.