Clarification required by the EGX
on Vodafone Egypt's letter to the ECA
Cairo, 13 February 2020: Telecom Egypt confirms that it has contacted the management of Vodafone Egypt to confirm the accuracy of the published news, which in turn clarified that it has indeed sent a letter to the Egyptian Competition Authority (ECA) inquiring whether Telecom Egypt's right of first refusal granted to the Company in the articles of association of Vodafone Egypt, if exercised, would be compatible with the Competition Protection Law.
Telecom Egypt asserts that it has studied its legal position and confirms all the rights that it has disclosed to its shareholders including:
- its right of first refusal granted in the shareholders' agreement and the articles of association of Vodafone Egypt;
- the right to accept a mandatory tender offer in accordance with the letter received from the Egyptian Financial Regulatory Authority in regards to the application of Chapter 12 of the Executive Regulations of the Egyptian Capital Market Law No. 95 / 1992 regarding tender offers; and
- any other rights guaranteed by the relevant Egyptian laws and the shareholders' agreement.
Telecom Egypt reiterates that it will take all necessary measures to ensure the maximum benefit from these rights for all of its shareholders. Telecom Egypt shall announce any developments in this regard in the interest of transparency and consistent disclosure.
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About Telecom Egypt
Telecom Egypt is the first total telecom operator in Egypt providing all telecom services to its customers including fixed and mobile voice and data services. Telecom Egypt has a long history serving Egyptian customers for over 160 years maintaining a leadership position in the Egyptian telecom market by offering its enterprise and consumer customers the most advanced technology, reliable infrastructure solutions and the widest network of submarine cables. Aside from its mobile operation 'WE', the company owns a 45% stake in Vodafone Egypt. Telecom Egypt's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on The Egyptian Exchange and the London Stock Exchange. Please refer to Telecom Egypt's full financial disclosure on ir.te.eg
For more information, contact:
The investor relations team