STC acquisition deal of Vodafone Egypt extended 60 days

STC acquisition deal of Vodafone Egypt extended 60 days

The Saudi Telecom Company's (STC) Memorandum of Understanding with Vodafone Group for the possible purchase of the latter's 55% stake in Vodafone Egypt has been extended for 60 days due to the novel coronavirus (COVID-19).

In a statement to the Saudi Stock Exchange, STC said that given the logistical challenges caused by the ongoing pandemic, the two parties involved in the acquisition, STC and Vodafone Group, have agreed to extend the MoU, effective as of Sunday.

The acquisition has been affected by the need for more time to complete the procedures related to the deal, including due diligence.

Sources close to the deal told Daily News Egypt last week that the acquisition MoU could be extended  due to the limited time available to complete the due diligence process. The sources noted that the deal is expected to be officially closed before November.

According to the sources, STC will present the due diligence it conducted to its financial advisors. This comes in preparation for the final decision on the value of the mandatory offer submitted to Vodafone Group regarding the 55% acquisition of its Egypt operations.

Daily News Egypt has learned a factor in the extension has been STC's keenness for more time to