STC announces the end of the memorandum of understanding regarding “Vodafone Egypt”

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Saudi Telecom announced today, Sunday, that no agreement has been reached regarding the purchase of 55% of Vodafone Egypt’s stake, while “keeping the dialogue open.”

On January 29, the two sides signed the non-binding memorandum of understanding to buy the share for $ 2.4 billion, before twice extending it, “given the logistical challenges caused by the Coronavirus pandemic and the need for more time to complete the procedures related to the deal.”

The offer was extended last April and again last July.

The deal was scheduled to be completed in June 2020, to become the largest for the Saudi company in more than ten years, with Vodafone Egypt estimated at $ 4.4 billion.

In the same context, STC said in a notice to the Stock Exchange that the second extension period ended “without reaching an agreement to complete the deal, due to lack of compatibility with the concerned parties.”

The non-binding agreement was concluded before the Corona crisis, and STC indicated logistical challenges caused by the pandemic when it announced a ninety-day extension last April.

Vodafone Egypt is the largest mobile operator in Egypt, as it has 44 million subscribers and controls 40% of the Egyptian market, according to the company.

Stc was established in 1998 and is listed on the Saudi Stock Exchange “Tadawul”. On January 27, 2020, the market value of the company’s shares reached 184 billion Saudi riyals (49.1 billion US dollars), making it the largest telecommunications company in the region and one of the 20 largest. Worldwide company.







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