Information  X 
Enter a valid email address

Vodafone Group Plc (VOD)

  Print      Mail a friend       Annual reports

Wednesday 08 November, 2006

Vodafone Group Plc

Strategic Partnership

Vodafone Group Plc
08 November 2006

8 November 2006


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

The highlights of the agreement, signed today in Cairo between the two
companies, 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 Egypt and Telecom Egypt will work together to develop service
      propositions for customers shared by TE Data (Telecom Egypt's retail 
      Internet and Data arm) and Vodafone Egypt.

   -  Where appropriate, Vodafone Egypt and Telecom Egypt may consider
      regional joint initiatives to work together where the combination of fixed 
      and mobile capability will add competitive advantage.

Vodafone * also intends to launch a tender offer for an additional 4.9% of the
shares in Vodafone Egypt at a price of LE 100 per share for a maximum possible
consideration of LE 1.176bn (£108m GBP **). 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.

If fully accepted, this tender offer will take Vodafone's shareholding in its
Egyptian subsidiary to 55%, with 45% held by Telecom Egypt. Subject to
regulatory approvals, the tender offer is expected to be launched next week.

Paul Donovan, CEO of Vodafone's EMAPA Region (Eastern Europe, Middle East, Asia
Pacific and Affiliates), said: 'We are very pleased to have agreed a strategic
partnership with Telecom Egypt, which further strengthens the working
relationship both companies have as Vodafone Egypt shareholders.

'The purchase of additional equity in Vodafone Egypt shows Vodafone's commitment
to the Egyptian market, which is further reinforced by our partnership with
Telecom Egypt to develop and expand products and services.'

Akil Beshir, Chairman and CEO of Telecom Egypt added: 'Today we have signed a
strategic partnership which will ensure that the most cutting-edge products and
services will be available in Egypt. This move will make it possible for
Vodafone Egypt to take advantage of the products and services from TE Data and
other parts of Telecom Egypt as well as increasing the opportunities for
Vodafone Egypt to sell its services through Telecom Egypt. This agreement will
also allow Telecom Egypt to maintain a substantial portion of the international
voice services volumes from Vodafone Egypt after the liberalisation of
international gateway services in Egypt'.

Ian Gray, CEO of Vodafone Egypt added: 'Vodafone Egypt now has a strong
strategic partnership between its two major shareholders that is the basis on
which we can tailor the global services and experience of the Vodafone Group to
the unique requirements of the Egyptian consumer. This agreement puts Vodafone
Egypt on a firm footing to capture future growth in the Egyptian
telecommunications market.'

                                     - ends-

For further information:

Vodafone Group

Investor Relations     Tel: +44 (0) 1635 664447
Media Relations        Tel: +44 (0) 1635 664444

Telecom Egypt

Tarek Tantawy, CFA
Director of Investment, Treasury & Investor Relations
Tel: +202 5788111

Eman Anis
Investor Relations Manager
Tel: +202 5788787

About Vodafone

Vodafone is the world's leading international mobile telecommunications group
with equity interests in 27 countries across 5 continents with 186.8 million
proportionate customers worldwide as at 30 June 2006 as well as 33 partner
networks. For further information, please visit

About the tender offer

* Vodafone will launch the planned tender offer through its Netherlands-based
subsidiary Vodafone Europe B.V.

About Telecom Egypt

Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started its
operations in 1854 with the first telegraph line in Egypt. Then it was
corporatized in 1998 to replace the former Arab Republic of Egypt National
Telecommunication Organization (ARENTO). The Company is the largest provider of
fixed-line services in the Middle East and Africa with 10.6 million subscribers
as at the end of June 2006 representing a teledensity of 14.8 percent. TE
provides retail telecommunication services including access, local, long
distance and international voice, Internet and data, and other services. The
company also provides wholesale services including bandwidth capacity leasing to
ISPs, and national and international interconnection services. Telecom Egypt's
services also include the provision of narrowband and broadband internet access
through its subsidiary TE Data. TE Data has current operations in Egypt and

About Vodafone Egypt

Vodafone Egypt is one of two current Egyptian mobile operators. The company will
announce its results for the quarter to 30 September 2006, on 8 November 2006.
For more information see the Vodafone Egypt Investor Relations section at

About the exchange rate used

** An exchange rate of LE 10.91 to 1 British Pound Sterling has been used

                      This information is provided by RNS
            The company news service from the London Stock Exchange

a d v e r t i s e m e n t