STC postpones $2 bln debt talks for financing Vodafone Egypt stake acquisition

Saudi Telecom Co. (STC) delayed talks to raise debt to fund the acquisition of Vodafone Group Plc’s stake in its Egyptian business due to the coronavirus outbreak, Bloomberg reported citing people with knowledge of the matter.

Work on the acquisition is still ongoing and STC may resume negotiations with banks for a loan of over $2 billion once things have settled, news agency added indicating that talks started before the virus rapidly spread and affected global economies.

The Kingdom’s largest telecom operator is also considering other financing options.

In January, STC signed a non-binding memorandum of understanding 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).