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Thursday, 13 February 2020

Egyptian Competition Authority is studying whether TE could invoke right of first refusal to a 55% stake in Vodafone Egypt without breaking monopoly law

M&A WATCH- Competition watchdog probing whether TE would break monopoly law by invoking its right of first refusal on Vodafone Group’s stake in Vodafone Egypt : The Egyptian Competition Authority (ECA) is looking into the legality of Telecom Egypt (TE) exercising its right of first refusal to purchase the 55% stake of Vodafone Egypt that the Saudi Telecom Company (STC) is looking to acquire, the ECA said in a statement cited by Al Shorouk. The ECA will study the implications under the Antitrust Act and its executive regulations. Under its shareholder agreement with Vodafone Group, TE holds a right of first refusal that allows it to claim the stake for itself.

TE has reportedly tapped a consortium of EFG Hermes and Citibank to advise on its options, Al Mal reports, citing sources close to the matter. EFG and Citi were in the running against a CI Capital-HSBC consortium. The state landline monopoly said last week it’s looking to hire an advisor after the Financial Regulatory Authority (FRA) said that STC would be required to submit a mandatory tender offer for its 44.8% stake.

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