HomeNewsSTC mulls reducing $2.39bn bid for controlling stake of Vodafone Egypt

    STC mulls reducing $2.39bn bid for controlling stake of Vodafone Egypt


    Meanwhile, in India, Vodafone hopes rebrand and extended payment deadline will herald a new start.

    Bloomberg cited anonymous sources suggesting that Saudi Telecom (STC) will seek to reduce its bid original bid of at $2.39 billion (€2.026 billion) for a 55% stake in Vodafone Egypt.

    STC and Vodafone signed a memorandum of understanding (MoU) in January with the intention of completing the transaction in June.

    At the time of the MoU, Vodafone Egypt’s value was estimated at $4.35 billion. Telecom Egypt holds the remaining share.

    This was delayed due to outbreak of Covid-19 and the deadline has since been extended twice. Bloomberg does not know by how much STC hopes to reduce its bid.

    Regulatory issues

    STC is obliged by regulatory rules to offer to acquire the whole company, but at that time, Telecom Egypt said it did not intend to sell its stake.
    In the wake of the Q2 financial results, it seems that Telecom Egypt could be considering its options, which include selling its stakes or buying out Vodafone Group.

    Meanwhile in India…

    Vodafone Idea has rebranded and clearly is hoping to draw a line under what has been a lengthy, torrid episode locked in battle with the country’s Ministry of Telecommunications and the Supreme Court.

    Last week the Supreme Court gave the three main Indian operators ten years to pay the taxes, penalties, interest, charges and fees they collectively owe, which amounts to €11 billion. Vodafone Idea is liable for €5.76 billion.

    Vodafone Group had repeatedly threatened to shutter the company unless the payment terms were amended.

    Its future in India is seen by many as hanging in the balance: its own a 45% stake in what was Vodafone Idea which is now branded Vi. Apparently it reflects integration and wholeness.