Telecom Egypt says STC’s acquisition of Vodafone Egypt subject to capital market law

Telecom Egypt (TE) is closely following up on the planned acquisition of a 55% stake in Vodafone Egypt by Saudi Telecom Co. (STC), the telecom operator said in a statement to The Egyptian Exchange (EGX).

“We are considering all investment options and opportunities related to the deal,” TE added, noting it is in the process of hiring an investment bank to conduct the feasibility study and implications.

TE also contacted the Financial Regulatory Authority (FRA), as per the recommendation of its legal advisor, to determine whether this potential transaction would be subject to the provisions of the Executive Regulations of the Egyptian Capital Market Law.

The FRA, in turn, confirmed that the potential transaction is subject to the provisions of the aforementioned law.

TE said it will announce any related updates in due course.

Last month, STC signed a non-binding memorandum of understanding (MoU) with Vodafone Group to acquire the latter’s 55% stake in Vodafone Egypt.