The Saudi Telecom Company (STC) has announced that it requires more time to complete its proposed acquisition of a 55 per cent stake in Vodafone Egypt, extending the memorandum of understanding by 90 days.
STC has agreed to purchase Vodafone Group’s 55 per cent stake in Vodafone Egypt for $2.4 billion, however, the current global Covid 19 pandemic has delayed the process.
The move will be a key opportunity for STCto expand its presence in North Africa.
Vodafone Egypt added a total of 230,000 new subscribers to its books last year, boosting its total number to 40.2 million subscribers. This rise was in stark contrast to the overall trend in the country, which saw mobile subscriptions decline by around 100,000. The introduction of new minimum fees by the National Telecoms Regulatory Authority of around $3.16 per mobile line are believed to have played a part in the decline.
The remaining 45 per cent stake in Vodafone Egypt is held by the country’s incumbent telecoms provider, Telecom Egypt.
The market currently values Vodafone Egypt at around $4.35 billion.