STC says no deal reached on Vodafone Egypt stake acquisition

Saudi Telecom Co. (STC) said today the memorandum of understanding (MoU) with Vodafone Group to acquire the group’s 55% stake in Vodafone Egypt expired without reaching a deal.

The telecom provider said in a bourse statement that no agreement was reached to conclude the transaction as a result of misalignment with relevant parties.

Meanwhile, an understanding has been reached to keep the talks open between STC and Vodafone Group,

The company indicated that any material developments will be announced 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.

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.

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