Saudi Arabian telecoms operator Saudi Telecom Company (stc) has reportedly completed a due diligence study regarding its proposed acquisition of Vodafone Group’s majority stake in Vodafone Egypt. According to MENAFN, stc’s financial advisors will now review the study with a view to making a final decision on the value of the mandatory offer that will be submitted to Vodafone Group for its approximate 55% stake in the Egyptian cellco.
As previously reported by CommsUpdate, in January 2020 stc signed a non-binding memorandum of understanding (MoU) with Vodafone Group to acquire its holding in Vodafone Egypt. At that date it was noted that the two parties had agreed on a cash consideration of USD2.392 billion for Vodafone’s shareholding, equivalent to an enterprise value for 100% of Vodafone Egypt of USD4.350 billion; the final consideration will, however, be determined upon signing of the definitive agreements. While the MoU was initially effective for 75 days, it was subsequently extended in April by a further 90 days due to the ‘logistical challenges caused by the COVID-19 pandemic’.
Meanwhile, the report cites unnamed sources as saying that stc is not interested in acquiring the almost 45% stake which Telecom Egypt currently holds in Vodafone Egypt.