[ad_1]
10:42 a. M.
Tuesday 08 September 2020
Prepared by – Alaa Hajjaj:
The US agency Bloomberg, citing official sources, said that STC is negotiating with Vodafone International to reduce the value of the offer presented by the Saudi company to buy the global company’s stake in Vodafone Egypt.
The agency clarified that the two sources who spoke to it included an Egyptian official, but requested that their identities not be revealed because they were not allowed to comment on the discussions.
Saudi Telecom Company had offered to buy Vodafone’s global stake in its Egyptian unit for $ 2.39 billion, or 55% of the company, while Telecom Egypt owns the remaining stake.
These discussions come with the close deadline for Saudi Telecom Company to complete the deal and implementation of the non-binding offer made by the Saudi company last January, and then Saudi Telecom Company was extended in July for a period of 60 days, due to the impact of the Corona virus pandemic.
According to Bloomberg, officials from Vodafone International or Telecom Egypt declined to comment on this information.
Egyptian capital market regulations require that STC, should the transaction be completed, make a mandatory offer for all shares of Vodafone Egypt, including the stake held by Telecom Egypt.
Vodafone Egypt’s ownership structure is divided between 55% for Vodafone International, which is the target percentage for the Saudi buyout offer, 44.8% for Telecom Egypt and the remaining 0.2% for small shareholders.
A Vodafone Egypt source said in previous statements to Masrawy that Vodafone Egypt had begun to transfer the management of various branches from its agent partners under the “franchise” system, while keeping the main branches of large shopping centers under its direct management.
According to the source, this step occurs in the implementation of a strategy that the company began some time ago to maximize the benefit of its subsidiaries and spread it in various governorates, and is not related to the company’s agreement with Saudi Telecom Company (STC ).
