September 27, 2021

A year later, stc-Vodafone Egypt deal still making headlines despite fallout

Telecom Egypt doesn't have any knowledge of stc resuming acquisition negotiations with Vodafone Egypt

CAIRO: Almost a year passed since talks between stc, and Vodafone International Group ended without reaching an agreement on stake sales in the Egyptian unit to the Saudi largest mobile operator, however, the deal still makes headlines.

Few days ago, CNBC Arabiya TV quoted sources saying that negotiations between STC and the Vodafone Group are back on the table after negotiations fell through in December.

The network said that the Saudi company is looking to secure a soft loan of about $1.1 billion to finance the deal using part of the liquidity available to it, and another part of the global debt markets.

Telecom Egypt - the largest telephone operator in Egypt - denied knowledge of renewed negotiations between stc and the Vodafone Group to acquire its stake in Vodafone Egypt.

In a bourse filing, Telecom Egypt attached four previous statements it issued regarding the deal during the period from January 29, 2020 to June 7, 2021, denying its knowledge of any recent developments.

Ayman Essam, head of the External and Legal Relations Sector at Vodafone Egypt, denied the existence of any ongoing talks at the present time between the Vodafone International Group and stc.

In an official statement, Essam affirmed Vodafone's commitment to the Egyptian market and work to provide a distinguished service to its customers, pointing out that his company recently obtained a new frequency package to improve the service, in addition to pumping several investments in the field of network, digital transformation and a number of financial inclusion projects in Egypt.

Negotiations to acquire Vodafone’s 55% stake in Vodafone Egypt began in January 2020, for $2.39 billion, according to a non-binding preliminary agreement signed at the time with stc.

Vodafone International agreed to enable the Saudi company to carry out the due diligence process for a period of 75 days, which can be extended, and in April 2020 stc requested an extension until June due to the repercussions of the coronavirus, and then the deadline was pushed again to September 12.

In September of last year, stc said that the period of the memorandum of understanding signed with Vodafone Egypt ended without reaching an agreement but the dialogue was open between the two parties.


Categories : telecom

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