UK-based telco Vodafone has announced the ending of its talks with Saudi Telecom Company (STC) on the US$2.4 billion sale of its 55% shareholding in Vodafone Egypt.
This is after a lengthy period of negotiations and a series of missed deadlines to complete the deal.
The acquisition of Vodafone Egypt by STC will bring Vodafone’s 22-year history in Egypt to an end. Vodafone has been operating in Egypt since 1998 and is the largest mobile operator in Egypt.
Vodafone Egypt’s shareholders’ structure consists of Vodafone Group, which holds 54.93%; Telecom Egypt with 44.94% and a minority free float of 0.13%. In its 2020 Annual Report, Vodafone Group mentions the successful disposal of its business in New Zealand and Malta and ongoing activity in Egypt and Australia.
It points to successful completion in its reshaping business to focus on two-scale platforms in Europe and Africa.
In April, the Group consolidated its holdings in Safaricom and M-Pesa to be primarily held through Vodacom.
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STC, Saudi Arabia’s biggest telecom operator, had struck a preliminary deal in January 2020 with Vodafone, with its eyes set on growing its share of the Arab World’s largest country.
Saudi Telecom Company is considered one of the Middle East’s heavy hitters, offering mobile, fixed telephone services, internet, and other data services to residential and businesses.
Vodafone had said in September this year that it remained in talks to finalize the deal with STC cited coronavirus-driven logistical challenges to seek extension twice to the initial agreement, first in April and then in July 2020.
Vodafone Egypt, with over 44 million subscribers and a 40% market share, is considered the country’s biggest mobile operator.
Egyptians are keen on an optimal framework for its telecoms sector, which will enable Vodafone Egypt to deliver.
Egypt wants to digitize and deepen financial inclusion while creating a technology hub to support its growth in Africa.
In January, Vodafone had said that selling the stake was in line with its plans to streamline all operations to focus on Europe and sub-Saharan Africa.
ALSO READ: Vodafone to Sell 55% Stake in Egypt Unit to Saudi Telecom
