- Telecom giant Vodafone said it had signed a non-binding agreement proposing a potential sale of its 55% shareholding in Egyptian assets to Saudi Telecom Company for $2.39bn.

The sale price would represent an enterprise value, which includes debt, of $4.35bn, implying a multiple of seven times adjusted Ebitda.

The two companies had also agreed the basis for a long-term partnering agreement that would include use of the Vodafone brand, preferential roaming arrangements and access to Vodafone's central procurement function.

Vodafone said it would continue to have a significant presence in Egypt through its shared services centres, recently rebranded as Vodafone Intelligent Solutions.

'This transaction is consistent with our efforts to simplify the group to two differentiated, scaled geographic regions - Europe and sub-Saharan Africa,' chief executive Nick Read said.

'Additionally, it will reduce our net debt and unlock value for our shareholders'

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