Saudi Arabia’s largest telecom STC said on Wednesday it has signed a preliminary agreement to buy Vodafone’s 55% stake in Vodafone Egypt for $2.4 billion.
Vodafone expects the deal to be completed by the end of June, its Egyptian unit said.
The non-binding MoU values Vodafone Egypt at $4.4 billion and is valid for 75 days from Wednesday. The deal to be extended upon mutual consent.
For his part, Vodafone Chief Executive Nick Read said: "Selling the stake is in line with Vodafone’s efforts to streamline its operations to focus on Europe and sub-Saharan Africa."
“It will reduce our net debt and unlock value for our shareholders,” he said, Reuters reported.
Telecom Egypt, which also owns a stake in Vodafone Egypt, said on Sunday it had no intention of selling its stake.
However, on Wednesday it said it was closely monitoring the process “to study all available alternatives for it to handle its investments in Vodafone Egypt”.
The binding agreement is subject to approvals by STC and Vodafone, and regulators.
STC, which is majority owned by Saudi Arabia’s state fund the Public Investment Fund, said no other parties were involved in the potential deal.
