The Vodafone brand will remain in Qatar through a branded Partner Market agreement
Vodafone Group today announced that Qatar Foundation will acquire Vodafone Europe B.V.’s 51% stake in the joint venture company - Vodafone and Qatar Foundation LLC - that controls Vodafone Qatar P.Q.S.C. (“Vodafone Qatar” or the “Company”).
Qatar Foundation will acquire Vodafone’s stake for a total cash consideration of QAR 1,350 million (€301 million), with QAR 1,250 million (€279 million) payable at completion and QAR 100 million (€22 million) payable 12 months after completion, which is expected in the next three months. This represents a 3% discount to the 30 trading day VWAP as at 25 February 2018. The transaction values Vodafone Qatar at an enterprise value of QAR 6,502 million (€1,451 million) *.
Vodafone Group and Vodafone Qatar have entered into a Partner Market agreement with an initial term of five years from completion. Vodafone Qatar provides voice, messaging, data and fixed communications services to around 1.4 million customers and under the Partner Market agreement will continue to use the Vodafone brand and benefit from the expertise and assets of Vodafone Group.
Vivek Badrinath, Chief Executive Officer of Vodafone’s Africa, Middle East and Asia-Pacific region said: “We have experienced great success over the years in building our joint business in Qatar and always enjoyed a strong working relationship with the Qatar Foundation. As the company embarks in a new phase of its journey, we now look forward to continuing our involvement with the business through a long-term, branded partnership agreement and are committed to its ongoing success.”