StockMarketWire.com - Telecom company Vodafone said it had agreed to transfer its 55% shareholding in Vodafone Egypt to Vodacom, its sub-Saharan African subsidiary.

'This transfer simplifies the management of Vodafone's African holdings and further strengthens the delivery of connectivity and financial services in Africa,' the company said.

The transaction valued Vodafone's 55% shareholding in Vodafone Egypt at €2.72 billion, Vodafone said.

Based on Vodafone's share of the net debt in Vodafone Egypt as at 30 September, the total equity consideration for the deal was €2.37 billion.

Vodafone said about 80% of the purchase consideration would be settled by the issue of new Vodacom shares to Vodafone, upping Vodafone's ownership in Vodacom to 65.1%.

The remaining 20% of the purchase consideration would be settled in cash.

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