STC needs more time to complete Vodafone Egypt stake acquisition

STC has requested a 60 day extension to the MoU in order to complete the $2.4 billion deal
Vodafone Egypt, Egypt, Telecoms, STC, TELECOM EGYPT, Mergers and acquisitions

Share

The Saudi Telecom Company (STC) has announced that it requires more time to complete the proposed acquisition of its stake in Vodafone Egypt, citing disruption from the Coronavirus pandemic as the reason for the delay.

In a filing to the Saudi Arabian bourse, Tadawul, Vodafone Egypt said that it would require an additional 60 days to complete the transaction.  

“STC announces that due to the logistical challenges caused by the COVID-19 pandemic, the parties need more time to complete the processes related to the transaction, including the due diligence and they have therefore agreed to extend the MoU for 60 days starting from today,” a bourse filing read.

This is the second time that STC has requested extra time to complete the deal, with the Saudi based telco already having extended the deadline by 90 days in April.

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 remaining 45 per cent stake in the company is held by Telecom Egypt.

The move will be a key opportunity for STC to expand its presence in North Africa.

The deal values Vodafone Egypt at $4.35 billion. Vodafone Egypt added a total of 230,000 new subscribers to its books last year, boosting its total number to 40.2 million subscribers.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.

Editor's Choice

Emerson expands analytics platform for industrial enterprise-level wireless infrastructure management
Plantweb Insight platform adds two new Pervasive Sensing applications that manage wireless networks more efficiently with a singular interface to the enterprise
Digitalisation seen as a competitive advantage by Middle East private businesses
Nearly 80 per cent of private business leaders acknowledge that digitalisation can impact business sustainability
Etisalat introduces Multi-Access Edge Computing architecture delivering best-in-class video streaming performance for 5G networks
MEC architecture achieves performance gains of as much as 90% in video streaming, validating how ultra-low-latency applications will be delivered over 4G and 5G networks

Most popular

Don't Miss a Story