British telco Vodafone is expected to realize a capital gain of $1.7 billion if the sale of its Egyptian subsidiary is completed. The group has recently reached a deal with Saudi Telecom Company, which has offered $2.39 billion to buy the shares.

This capital gain corresponds to the remaining share of the British group in the capital of Vodafone Egypt. According to a statement by US Securities and Exchange Commission in 2004, Vodafone reached an agreement to get 7% stake in the Egyptian branch from the French company Vivendi, which was also a co-shareholder. The amount spent on the deal was not disclosed.

Vodafone entered the Egyptian market in 1998 through the acquisition of 30% stake in the capital of the Misrfone company for £100 million. Misrfone obtained an operator's license the same year. In 1999, Vodafone acquired the remaining shares in Misrfone from the US operator Airtouch, for £326 million. Considering the pound sterling/US dollar exchange rate of that period, the total value disbursed was $681.6 million.

Idriss Linge