Egypt: STC extends the acquisition operation of Vodafone Group shares in Vodafone by 90 days
April 13th 2020
Saudi Telecom Company (STC), the long-standing telecommunications operator in Saudi Arabia, announces that it has extended by 90 days the duration of the transaction to acquire the 55% stake in Vodafone Group in its subsidiary d ‘Egypt. The company explains that its decision stems from logistical problems caused by the coronavirus.
It was on January 29, 2020 that the Saudi Telecom Company entered into a preliminary agreement with Vodafone Group to purchase its stake in Vodafone Egypt, valued at 2.4 billion US dollars. This transaction will allow STC to fulfill its ambition to expand in the Middle East North Africa (MENA) region.
Nasser al Nasser, the CEO of STC, justified the company’s interest in Vodafone Egypt because the operator ” is the leader in the Egyptian mobile telephone market and we are eager to contribute further to its continued success “. STC has been seeking to enter the Egyptian telecoms market for several years. The company had also expressed an interest in the 4G license.
On the side of Vodafone Group Plc, Nick Read, the managing director of the telecoms company, underlined that “ this transaction is part of our efforts to simplify the group into two different geographic areas (…). It will also reduce our net debt and unlock value for our shareholders. ”
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