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Telecom Egypt mulls acquisition of all Vodafone Egypt shares - report

Wednesday 16 September 2020 | 10:15 CET | News

Telecom Egypt is considering acquiring all the shares in Vodafone Egypt, Al-Borsa reported, citing sources close to the potential deal involving Saudi Telecom Company (STC) buying 55 percent of Vodafone's Egyptian unit. Telecom Egypt has reportedly commissioned Hermes and Citibank to study its investment opportunities in the deal, the seriousness of the acquisition, and using the right of preemption. 

It quoted sources as saying that the banks had contacted four to five foreign banks that had expressed their agreement to finance the acquisition if the Egyptian government made a competitive bid. The sources added that the list of banks included Mashreq Bank and First Abu Dhabi Bank. They also said that a plan was being studied to restructure Telecom Egypt's WE network and Vodafone Egypt's network and merge them. Telecom Egypt has a 45 percent stake in Vodafone Egypt.

Vodafone Global signed a memorandum of understanding with STC on 29 January regarding the possible sale of the stake to STC for USD 2.4 billion. The memorandum was extended for 90 days and then for another 60 days on 12 July because of the coronavirus outbreak. STC said on 13 September that no agreement had been reached on the sale, but that dialogue would remain open and that any substantial developments would be announced. 

The terms of the deal included a purchase sum of USD 2.4 billion. This amount equals a full valuation of Vodafone Egypt at USD 4.35 billion, provided that the final financial compensation is determined upon signing the final agreements.


 



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Categories: General
Companies: Saudi Telecom / Telecom Egypt / Vodafone / Vodafone Egypt
Countries: Egypt
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