STC extends MoU to acquire 55% stake in Vodafone Egypt for 90 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 90 days.

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

Both the parties will be working to progress the transaction as set out in the MoU during this period, the statement added, noting that any updates regarding this matter 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).

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