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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 VOD, +1.53% VOD, +1.30% 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 7010, -0.66% were in talks over the deal.
