The agreement signed in January 2020 by Saudi Telecom Company to acquire Vodafone Group’s 55% stake in Vodafone Egypt has come to an end. The two sides, however, decided to maintain the dialogue. According to STC, the Covid-19 hampered its logistical capacities to finalize the operation.
It is not excluded that the acquisition by Saudi Telecom Company (STC) of the 55% of Vodafone Group in Vodafone Egypt will eventually fall apart. 48 hours after sources familiar with the matter told Bloomberg that the offer of 2.39 billion USD could be revised downwards, STC announced on September 13, 2020 the end of the term of the memorandum of understanding signed last January without agreement to conclude it.
STC said, however, that the two sides have agreed to keep the dialogue going, certainly in case they eventually find common ground conducive to realizing the Saudi operator’s ambitions.
The expiry of this agreement occurs although STC has given itself twice to the time to finalize it with the British telecoms group. The first postponement of finalization, which took place in April 2020, was for a period of 90 days and the second postponement for 60 days occurred on July 12, 2020. STC had raised logistical problems linked to the Covid-19 pandemic as obstacles to its financial capacity to complete the acquisition of the capital of Vodafone Egypt once and for all.