Telecoms company, Vodafone Egypt has confirmed that 55 percent of its shares are going to Saudi Arabia’s Telecommunications Company, (STC)Saudi Telecom.
The deal running in USD $ 2.39 Billion the Egyptian telecommunications firm with headquarters based in the UK exit the North African country.
The remaining 45 percent stake of Vodafone Egypt owned by Telecom Egypt will however not be up for sale.
According to reports, the valuation is worth around USD $ 4.35 Bn and this figure is completely for Vodafone Egypt.
Ben Padova, Head of Corporate Communications, Vodafone said, “The announcement is about STC acquiring Vodafone’s leftover 55 percent, hence the figure of USD $ 2.39 Bn is the one to focus on”
Both telecom companies have signed a memorandum of understanding with the transaction expected to get completed before June 2020 runs out. Nonetheless, the deal is still subjected to approval due to regulations.
Saudi Telecom has reiterated that the acquisition of Vodafone Egypt is aligned with the firm’s business in the Middle East and North Africa (MENA) region.
According to Nasser al Nasser, Chief Executive Officer of STC, “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.”
Nick Read, CEO, Vodafone Group said that the plans for the acquisition are to make the firm differentiated in two regions, SuB-Saharan Africa and Europe.
“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),” Nick emphasised.
Featured Image: en.walalghad
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