Preview: Zamalek need to be more efficient in tight second-place fight    Palestinians warn Israel-UAE deal imperils Jerusalem's Al-Aqsa mosque    Libya sovereign fund to ask UN for freedom to invest billions    Lebanon alone must decide its own future, says Iran foreign minister    US to make coronavirus strain for possible human challenge trials    EU reaches deal with AstraZeneca for at least 300 million doses of potential COVID-19 vaccine    Leipzig's Nagelsmann relishing German coaching duel with Tuchel    Live score: Barcelona v Bayern Munich (UEFA Champions League)    Jailed Muslim Brotherhood leading member Essam El-Erian dies from heart attack    Germany: Optimistic we'll have a vaccine in coming months and certainly next year    EBRD provides $200mn for Egypt's trade, private business amid coronavirus    Egypt sends shipment of 14 tonnes of flour to Lebanon    Egypt records 129 new coronavirus cases, 26 deaths on Wednesday    UK enters recession after GDP dived by a record 20.4% in Q2    New Zealand locks down largest city after cases end 102-day run    Egypt's property developer SODIC profits drop 80% in H1    Egypt's senate elections 2020 trending on social media in few days    Egypt reopens Rafah border crossing for first time since April    168 new coronavirus cases, 24 deaths recorded on Tuesday    Egypt discusses Amazon expansion plans in the local market    Scramble for the Senate seats    French publisher's jarring memoir to be released in English    Breaking down barriers    Foreign currency takes a hit    The last piece of gold    Mohamed Mandour, guru of modern pottery    Lebanese demand change after government quits over Beirut explosion    Trump says ‘great' bond with China's counterpart changed after COVID-19    VIDEO: Al-Rehab residents vote in ُEgypt's Senate elections in highly organized manner    Netflix Egypt released its teaser images of Arabic original series, Ma Waraa Al Tabiaa    Egypt puts in place scheme ahead of Senate elections – ministry    African Champions League final will be played on Oct. 16-17, CAF says    Egypt invites Tesla's founder to visit Giza Pyramids after controversial tweets    No room to delay Egyptian Premier League games – EFA's board member    Egypt Cup games to resume after Premier League finishes: EFA    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Google ‘translate' ancient Egyptian hieroglyphs    Zaha speaks out after online racial abuse    

Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.

STC willing to buy only Vodafone Group's 55% stake in Egypt unit
Sources close to deal expect it will be officially closed by November
Published in Daily News Egypt on 06 - 07 - 2020

The Saudi Telecom Company (STC) has completed, at the end of June, a due diligence study in its potential acquisition of Vodafone Group's stake in Vodafone Egypt.
STC financial advisors will review the study in preparation for a final decision on the value of the mandatory offer to be submitted to Vodafone for buying its 55% stake in Vodafone Egypt.
According to sources close to the deal, the submission of the mandatory purchase will be officially announced on 15 July at 5pm Riyadh time. STC may also instead announce the extension of the due diligence agreement, according to the agreement that was extended in April for a period of 90 days.
In case STC announces that it has made a mandatory purchase offer, Vodafone Group will have three options, either to approve, reject, or enter a new round of negotiations on the financial value.
At the end of January, Vodafone and STC announced that they had signed a Memorandum of Understanding (MoU) that would see the former sell its 55% stake in Vodafone Egypt to the Saudi company. The two parties reached an agreement that would see Vodafone sell all its shares in its Egypt unit at a value of nearly $2.4bn.
The sources added that the Saudi mobile operator remains interested in the deal and will send its mandatory offer about the 55% purchase. At the same time, the sources confirmed that STC is not willing to buy the remaining 45% owned by Telecom Egypt (TE).
The ownership structure of Vodafone Egypt is divided into 55% belonging to Vodafone Group, 44.8% belonging to TE. The remaining 0.2% stake belongs to shareholders.
The potential deal is subject to the provisions of Chapter 12 of Egypt's executive regulations of the Capital Market Law No 95 of 1992 regarding purchase offers with the intention of acquisition.
TE's Board of Directors has agreed to appoint a strong alliance that includes both EFG Hermes and Citibank as investment banks, in addition to Al-Tamimi and Co as legal consultant. The alliance will provide a full study of the options available to TE regarding dealing with its stake in Vodafone Egypt.
The company will announce the results of that study and any developments once they emerge, however, the study's time-length has yet to be announced.
The sources indicated that the STC is expected to agree with VIS on an extension of at least a month to the negotiations period for several reasons. These include the limited time to present the due diligence to financial advisors, as the company completed this only at the end of June.
The recent and ongoing novel coronavirus (COVID-19) pandemic has also affected global markets and consumer spending on telecommunications services. It is expected, according to sources, that the deal will be officially closed by this coming November.
Naeem Research maintains its BUY recommendation on TE with a target price of EGP 19.1 / share, disregarding its eventual position in the transaction (whether to sell, retain or raise its stake in Vodafone Egypt).
The deal, which values Vodafone Egypt at an enterprise value of $4.35bn, implies a fair value of EGP 18/share for TE, including just its standalone investment in Vodafone Egypt. This also excludes its underlying business.

Clic here to read the story from its source.