Saudi Arabian telecoms operator Saudi Telecom Company (stc) has signed a non-binding memorandum of understanding (MoU) with Vodafone Group to acquire its 55% stake in Vodafone Egypt. The MoU shall be effective for a period of 75 days from the date of its inking and can be extended with the mutual consent of both parties. The two parties agreed on a cash consideration of USD2.392 billion for Vodafone’s shareholding in Vodafone Egypt, equivalent to an enterprise value for 100% of Vodafone Egypt of USD4.350 billion; the final consideration will be determined upon signing of the definitive agreements. A binding agreement is subject to the approval of stc and Vodafone, and the respective regulators. stc said no other parties were involved in the preliminary deal.
Vodafone Egypt is owned by Vodafone Group (54.93%) and Telecom Egypt (TE, 44.94%), with the remainder in free float.