International Finance

STC says no agreement with Vodafone to acquire its unit in Egypt

STC Vodafone Egypt_IFM_Image
STC earlier signed a MoU to acquire a 55% stake in Vodafone Egypt

Saudi Arabia’s largest telco Saudi Telecom Company (STC) has announced that it has no agreement with Vodafone to acquire its business in Egypt.

Previously, both STC and Vodafone signed an Memorandum of Understanding (MoU) for  STC to acquire a 55 percent in Vodafone Egypt.

However, STC recently said in a statement that the MoU it had signed with Vodafone International Group had expired without the two sides reaching an agreement.

“An understanding has been reached between STC and Vodafone Group to keep the dialogue open,” the Saudi company added.

The deal would have been STC’s biggest ever and it would have valued Vodafone Egypt around $4.4 billion.

Bloomberg recently reported that STC has been engaged in discussion with Vodafone recently to subsequently reduce the $2.4 billion price agreed earlier in January for the acquisition.

In July, the MoU was further extended by 60 days as the coronavirus pandemic impacted not only the business of both parties but also negotiations.

With 44 million subscribers and a 40 percent market share, Vodafone Egypt is the country’s biggest mobile operator.

Earlier this year, STC announced that it is planning to phase out 3G in the kingdom to make way for 4G and 5G technology.

The project by STC, which is called the ‘3G sunset program’ is expected to end in 2022. It aims for a smooth transition of all remaining 3G customers to its 4G and 5G networks in the next two years.

According to reports in the media, the 3G freed spectrum will be reutilized for the new and more advanced technologies.

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