stc postpones Vodafone Egypt stake acquisition again

13 Jul 2020

Saudi Telecom Company (stc) has announced a further extension of the non-binding memorandum of understanding (MoU) it struck with UK-based Vodafone Group in January 2020, related to its proposed acquisition of the latter’s 55% stake in Vodafone Egypt. In a statement regarding the latest delay – the MoU was previously extended for a 90 day period in April 2020 – stc said that a further 60-day extension was being implemented, ‘due to the logistical challenges caused by the COVID-19 pandemic’. According to the Saudi company more time is required ‘to complete the processes related to the transaction, including the due diligence’.

As previously reported by CommsUpdate, in January 2020 stc signed a non-binding MoU with Vodafone Group to acquire its holding in Vodafone Egypt, with the two parties having 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.

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