Saudi Telecom seeks to cut US$2.39b offer for Vodafone Egypt

[RIYADH] Saudi Telecom is in discussions to reduce its non-binding US$2.39 billion offer for a stake in Vodafone Egypt, two people with direct knowledge of the talks said.

The discussions come as a deadline nears for STC to move ahead with the non-binding offer first made in January. The Saudi company in July extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.

The cash offer is for Vodafone's 55 per cent stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt. STC had said that the offer gives the Egyptian business an enterprise value of US$4.35 billion.

The two people, who include an Egyptian official, didn't provide additional details and requested anonymity because they weren't authorised to comment on the talks.

STC's spokesperson couldn't be reached for comment. Spokesmen for Vodafone Group and Vodafone Egypt declined to comment Egyptian market regulations would require Saudi Telecom to submit a mandatory tender offer for all of Vodafone Egypt, including the stake held by Telecom Egypt.

BLOOMBERG