M&A WATCH- STC completes due diligence on Vodafone Egypt, to announce intention mid-July: Saudi Telecom (STC) has concluded its due diligence on Vodafone Egypt ahead of its potential USD 2.4 bn acquisition of Vodafone Group’s 55% stake in the company, Masrawy reports, citing unnamed sources it says are familiar with the matter. The company will reportedly announce on 15 July, at 5pm Riyadh time, whether it will submit a purchase offer or request another extension. STC in April extended the purchase agreement beyond its initial 75-day shelf life by three months, citing “logistical challenges” caused by the pandemic.

Background: 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. Telecom Egypt, which owns the remaining 45% of Vodafone Egypt, has a right of first refusal on the transaction but it remains unclear 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.