STC extends MoU to acquire 55% stake in Vodafone Egypt for 60 days

Saudi Telecom Co. (STC) extended the non-binding memorandum of understanding (MoU) to acquire 55% stake in Vodafone Group’s Egyptian business for additional 60 days.

The telecom provider said in a bourse statement that due to the logistics challenges caused by the COVID-19 pandemic, both parties need more time to complete the required procedures, including due diligence.

Any material development with respect to the transaction will be announced on Tadawul in due course.

In January this year, STC signed a non-binding MoU to acquire 55% stake in Vodafone’s Egyptian business, according to data compiled by Argaam.

The deal is estimated at $2.39 billion (SAR 8.97 billion), valuing Vodafone Egypt at $4.35 billion (SAR 16.31 billion).

However, in April, STC extended the MoU for an additional 90 days as both parties needed more time to fulfill the required processes due to the logistics challenges caused by the pandemic.