Vodafone Group announced a move to transfer its 55 per cent holding in Vodafone Egypt to its sub-Saharan Africa subsidiary Vodacom in a deal valued at €2.4 billion, as it looks to simplify management of its businesses in the continent.

In a statement, Vodafone said around 80 per cent of the deal would be settled through issuing 242 million new ordinary shares in Vodacom, while the remaining 20 per cent would be settled in cash. The issuing of new shares means Vodafone’s ownership in Vodacom will increase from 60.5 per cent to 65.1 per cent.

The transaction in total values Vodafone’s 55 per cent shareholding in Vodafone Egypt at €2.7 billion, with the deal price reducing to €2.4 billion to account for debt. The remaining 45 per cent of Vodafone Egypt is held by Telecom Egypt, the country’s incumbent.

Explaining the rationale behind the move strategically, the companies said it helps to simplify management of holdings in Africa, it gives Vodacom exposure to another leading business in an attractive market and it expects Vodafone Egypt to benefit from closer cooperation with its new parent, “enabling it to accelerate growth in financial services and IoT”.

Vodafone Egypt is the country’s largest mobile player, offering telecoms services to 43 million consumer and enterprise customers, and has 43 per cent revenue market share, said Vodacom.

Shameel Joosub, CEO of Vodacom Group, said the deal would cement its position as Africa’s leading “techno”, while increasing total population coverage on the continent to more than “half a billion people and more than 40 per cent of Africa’s GDP”.