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Tue 8 Sep 2020 09:24 AM

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Saudi Telecom seeks to cut $2.39bn offer for Vodafone Egypt

STC says that the offer gives the Egyptian business an enterprise value of $4.35bn

Saudi Telecom seeks to cut $2.39bn offer for Vodafone Egypt

The cash offer is for Vodafone’s 55 percent stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt.

Saudi Telecom Co. is in discussions to reduce its non-binding $2.39 billion offer for a stake in Vodafone Egypt, two people with direct knowledge of the talks said.

The discussions come as a deadline nears for STC to move ahead with the non-binding offer first made in January. The Saudi company in July extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.

STC delays $2.4bn Vodafone Egypt stake deal because of Covid-19

In January, STC said that it had reached a preliminary deal to buy the take for $2.4 billion as it seeks expansion opportunities in Egypt, the Arab World's most populous nation

The cash offer is for Vodafone’s 55 percent stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt. STC had said that the offer gives the Egyptian business an enterprise value of $4.35bn.

The two people, who include an Egyptian official, didn’t provide additional details and requested anonymity because they weren’t authorized to comment on the talks.

Vodafone in talks to sell Egypt unit to Saudi Telecom

Government official says Saudi Telecom Company is in frame to buy majority stake in Vodafone Egypt

STC’s spokesperson couldn’t be reached for comment. Spokesmen for Vodafone Group Plc and Vodafone Egypt declined to comment.

Egyptian market regulations would require Saudi Telecom to submit a mandatory tender offer for all of Vodafone Egypt, including the stake held by Telecom Egypt.

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