Saudi Telecom Co (STC) has completed studying purchase of 55% stake in Vodafone Group’s Egyptian unit, amounting to $2.4 billion.
The London-listed telecom firm has said that it remains in discussions regarding sale of its business with STC. Notably, a memorandum of understanding (MoU) signed between two parties expired recently. Telecom Egypt holds the remaining 45% stake in Vodafone’s Egyptian business.
“Vodafone now looks to STC and Telecom Egypt to find a suitable agreement to enable the transaction to close,” the company said today.
Vodafone Egypt’s Partner Telecom Egypt Ignored?
Telecom Egypt claimed on September 14 it hasn’t received proposals from Vodafone or STC company. The company added that it does not “have insight into the state of discussion or terms being discussed between the parties.”
Telecom Egypt further added that its action would depend on the terms of any proposals submitted to it. The company said it is confident of its ability to execute a number of “strategic options.” Its options include right of first refusal and considering accepting a mandatory tender offer for its Vodafone Egypt stake.
A day earlier, Saudi Arabia’s largest telecoms operator STC said no formal agreement had been reached because the parties were keeping dialogues open. It had signed a non-binding agreement in January and later cited coronavirus-driven logistical challenges to seek extension in April and July.
Biggest Saudi Telcom Deal
If fructified, the deal will be STC’s largest in over a decade. Vodafone Egypt is the country’s largest mobile operator with 44 million subscribers and a 40% market share.
