STC expected to conclude due diligence on Vodafone Egypt by mid-July -source
M&A WATCH- STC expected to conclude due diligence on Vodafone Egypt by mid-July: Saudi Telecom (STC) is expected to conclude its due diligence on Vodafone Egypt ahead of its potential acquisition of Vodafone Group’s 55% stake in the company, valued at USD 2.4 bn, Youm7 reports, citing an unnamed source close to the matter. STC began due diligence in March after signing a non-binding MoU with Vodafone Group at the end of January to purchase its stake in Vodafone Egypt in a sale that would value the company at USD 4.4 bn.
STC has run into delays because of covid-19: STC in April extended the purchase agreement beyond its initial 75-day shelf life by three months, citing “logistical challenges” caused by the pandemic, saying it required more time to complete due diligence.
Telecom Egypt’s position remains uncertain: Telecom Egypt, which owns the remaining 45% of Vodafone Egypt, has a right of first refusal on the transaction and was reportedly expected to decide in March how it plans to proceed. The Financial Regulatory Authority said after the initial acquisition agreement that the Saudi company may be required to make a mandatory tender offer for 100% of the company if it goes ahead with the buyout.