Buy, sell or hold? Telecom Egypt on Vodafone Egypt transaction early next month.
Buy, sell or hold? Telecom Egypt on Vodafone Egypt transaction early next month. Telecom Egypt will decide early next month whether it will exercise its right of first refusal on Vodafone Group’s 55% stake in Vodafone Egypt, the local press reports, citing sources close to the matter. Saudi Telecom (STC) has already begun doing due diligence on Vodafone Egypt ahead of a possible USD 2.4 bn acquisition of Vodafone Group’s 55% stake in the company. The two sides signed an MoU in January. TE already owns a 45% take in VFE that carries with it a right of first refusal on the 55% it does not own.
TE could also sell its 45% stake in VFE to STC, as the Financial Regulatory Authority may compel STC to purchase the entire company, the sources added. STC is reportedly trying to find ways around the mandatory tender offer.