stc extends timeframe for completing acquisition of stake in Vodafone Egypt

14 Apr 2020

Saudi Arabian telecoms operator Saudi Telecom Company (stc) has announced that it has extended the duration of a non-binding memorandum of understanding (MoU) with Vodafone Group under which it plans to acquire the latter’s 55% stake in Vodafone Egypt.

In an announcement to the Saudi Stock Exchange (Tadawul) stc confirmed that the parties involved in the proposed deal have agreed to extend the MoU for 90 days, starting from 13 April. In the filing, stc cited the ‘logistical challenges caused by the COVID-19 pandemic’, saying that these meant more time was needed to complete the processes related to the transaction, including due diligence.

As previously reported by CommsUpdate, in January 2020 stc and UK-based Vodafone Group agreed on a cash consideration of USD2.392 billion for the latter’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.

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