By Adria Calatayud
Vodafone Group PLC said Wednesday that it has agreed to sell its 55% stake in its Egypt unit to Saudi Telecom Co. for $2.39 billion.
Both parties have signed a memorandum of understanding for the sale of Vodafone’s shareholding, the U.K. telecommunications group /zigman2/quotes/202484985/delayed UK:VOD +0.42% /zigman2/quotes/202862751/composite VOD +0.85% said.
The parties have also reached an agreement on the basis for a long-term partnership which will include use of the Vodafone brand, preferential roaming arrangements, access to Vodafone’s central procurement function, and a range of other services, the U.K. company said.
Vodafone said it will continue to have a significant presence in Egypt through its shared-services centers.
Bloomberg first reported that Vodafone and Saudi Telecom SA:7010 -1.79% were in talks over the deal.