Saudi Telecom To Re-negotiate USD 2.39 Billion Offer for Vodafone Egypt

Vodafone To Sell Stake In Egyptian Subsidiary To Saudi Telecom Company
Photo: CodeCarvings Piczard

Saudi Telecom Co (STC), Saudi Arabia’s largest telecoms operator, is re-negotiating to reduce its non-binding USD 2.39 billion offer for 55% stake in Vodafone Egypt, according to Blomberg citing two people familiar with the negotiations.

With about 44 million subscribers and a 40% market share, Vodafone Egypt is the country’s biggest mobile operator.

In January, STC inked a non-binding agreement for a possible acquisition of the 55% from Vodafone Global for USD 2.39 billion an enterprise valuation of USD 4.35 Billion. The agreement was extended for 90 days in April, due to the coronavirus pandemic, and a further 60 days in July.

Egypt’s state-owned operator, Telecom Egypt, owns the remaining 45% stake in Vodafone Egypt and is reportedly considering buying out the remaining 55%.

According to newspaper Al-Borsa, Telecom Egypt has commissioned Hermes and Citibank to study its investment opportunities in the deal, the importance of the acquisition leveraging its contractual right of pre-emption.

Vodafone Global recently confirmed that it had completed all due diligence procedures regarding the possible sale of its stake and that it is still in talks with STC to complete the deal in the near future.

If the deal goes through, Egyptian market regulations would require Saudi Telecom to submit a mandatory tender offer for all of Vodafone Egypt, including the stake held by Telecom Egypt.

© Space in Africa 2020

All rights reserved. Any redistribution or reproduction of part or all of the contents in any form is prohibited. You may not, except with our express written permission, distribute or commercially exploit the content. Nor may you transmit it or store it in any other website or other forms of electronic retrieval system.


New Report: The 2020 Edition of African Space Industry Annual Report is now available. It presents data and analyses on projects, deals, partnership and investments across the continent. It also provides analyses on the growing demand for space technologies and data on the continent, the business opportunities it offers and the necessary regulatory environment in the various countries.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.