Vodafone Egypt asks competition watchdog to consider Telecom Egypt’s pre-emption rights

14 Feb 2020

A request filed by Vodafone Egypt, which calls for an examination into whether Telecom Egypt has the right to claim pre-emption rights over the potential sale of a majority stake in the cellco, is to be considered by the Egyptian Competition Authority (ECA), according to Ahram Online.

As previously reported by CommsUpdate, last month Saudi Arabian telecoms operator Saudi Telecom Company (stc) signed a non-binding memorandum of understanding (MoU) with UK-based Vodafone Group to acquire its 55% stake in Vodafone Egypt. Now, however, with the remaining 45% stake in Vodafone Egypt currently held by Telecom Egypt, the last named company is understood to have claimed that its pre-emption right is ‘guaranteed under a shareholders’ agreement and the main system of Vodafone Egypt’.

Confirming the development, a statement issued by the ECA noted: ‘The authority received a request from Vodafone Egypt to study whether the use of pre-emption by Telecom Egypt to buy Vodafone Group’s share in Vodafone Egypt is in line with the competition law.’

Egypt, Saudi Telecom Company (stc), Telecom Egypt, Vodafone Egypt