Vodafone Group Egypt has agreed to sell 55% of its stakes to Saudi Arabia’s largest telecom operator, STC (also known as Saudi Telecom) for $2.4 billion. The non-binding deal values Vodafone Egypt at $4.4 billion and the two companies have agreed eventually to use the Vodafone brand in Egypt and its other services in the long run by STC that is majorly owned by Saudi Arabia’s Public Investment Fund.
Vodafone Chief Executive Nick Read said, “Selling the stake is in line with Vodafone efforts to streamline its operations to focus on Europe and sub-Saharan Africa”. He added, “It will reduce our net debt and unlock value for our shareholders.”
On the other hand, Telecom Egypt, which owns a stake in Vodafone, announced this week that they never agreed to sell their share.
Vodafone announced that the transaction is expected to be finalized by June, and STC said the mutual, non-binding agreement is going to be valid for 75 days and is subject to extension if both parties give mutual consent.
STC Chief Executive Nasser al-Nasser said: “Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuing success.”