Egypt’s Largest Telco Vodafone Confirms 55 Percent Stake Sale To Saudi Telecom For USD 2.39 Bn
Vodafone Egypt – Egypt’s largest telco – has confirmed that it is selling whole 55 percent of its shareholding to Saudi Telecom – Saudi Arabia-based telecommunications company.
The USD 2.39 Bn deal will see the London-headquartered telecommunications company exit Egypt. Vodafone Egypt’s remaining 45 percent stake is still owned by Telecom Egypt, who has said it will not be selling.
The sale is reportedly for a valuation of USD 4.35 Bn. A spokesperson from the base in the United Kingdom has nodded for this figure, noting that the figure is for 100 percent of Vodafone Egypt.
“The announcement is about STC acquiring Vodafone’s leftoever 55 percent, hence the figure of USD 2.39 Bn is the one to focus on,” Ben Padova, Head of Corporate Communications at Vodafone, told WeeTracker.
A memorandum of understanding has been signed between both parties, and the transaction is expected to be finalized by the end of June 2020. However, the deal is subject to regulatory approval.
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The acquisition of Vodafone Egypt aligned with the Saudi Telecom’s drive to create touch points for its business in the MENA region.
Nasser al Nasser, Chief Executive Officer of STC, said, The transaction, which is still subject to a detailed due diligence, confirms STC’s eagerness to maintain a leadership position not only in the KSA, but also in the wider region.”
Vodafone Group CEO, Nick Read said the deal is consistent with their plans to simply the company into two differentiated, scale geographic regions – Europe and Sub-Saharan Africa.
“Additionally, it will reduce our net debt and unlock value for our shareholders. We look forward to continuing our close relationship with the business through a Partner Market agreement, and building on our significant shared service operations in Egypt, known as _VOIS (Vodafone Intelligent Solutions),” he said.
Featured Image: Flickr
