Saudi Telecom Company (STC) has signed a Memorandum of Understanding (MoU) with Vodafone Group in relation to the potential acquisition of Vodafone’s 55 per cent shareholding in Vodafone Egypt by STC
Saudi Arabia-based telecoms company STC and Vodafone have agreed on a cash consideration of US$2.39bn. The final consideration will be determined upon signing of the definitive agreement.
Nasser al Nasser, CEO of STC, said, “The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region. The transaction, which is still subject to detailed due diligence, confirms STC's eagerness to maintain a leadership position not only in the KSA, but also in the wider region.”
“Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuing success.”
Nick Read, CEO of Vodafone, said, “This transaction is consistent with our efforts to simplify the Group to two differentiated, scaled geographic regions - Europe and sub-Saharan Africa. Additionally, it will reduce our net debt and unlock value for our shareholders.
“We look forward to continuing our close relationship with the business through a Partner Market agreement, and building on our significant shared service operations in Egypt, known as _VOIS (Vodafone Intelligent Solutions).”
Following the completion of due diligence on Vodafone Egypt by STC, any binding agreement with respect to this transaction will be subject to obtaining the approvals of STC and Vodafone boards as well as any relevant regulatory approvals.
