STC Postpones Acquisition of Vodafone Egypt for Second Time

The Saudi Telecom Company (STC), one of the largest in the Kingdom, said on Sunday that it will need another 60 days to complete the acquisition of a 55% stake in Vodafone Egypt.

In January, Saudi Telecom concluded a non-binding agreement to purchase the stake for $ 2.4 billion but, it extended the process for 90 days in April, due to what it said were logistical challenges caused by the novel coronavirus pandemic.

The company said in a statement it would extend the period again to September for the same reason.

Last April, the Saudi giant has paused talks with banks regarding a $2 billion financial package for the acquisition of Vodafone Group Egypt due to disruption caused by the deadly virus.

STC share price drops 0.51% to SAR 97.50

It is noteworthy that the Public Investment Fund, the Saudi sovereign wealth fund, owns a majority stake in Saudi Telecom.

Vodafone is competing in the Egyptian market with Orange and Telecom Egypt, a subsidiary of Emirates Telecom.

STC is headquartered in the Saudi Capital Riyadh, and employs more than 17,000 workers, with subsidiaries in Bahrain, Kuwait and others with revenues of about $13.9 billion.