STC signs non-binding MoU to acquire 55% of Vodafone’s share in Egypt
Saudi Telecom Company, stc announces the signing a non-binding MoU with Vodafone in relation to stc’s potential acquisition of Vodafone’s 55% shareholding in Vodafone Egypt.
The Potential Transaction is in line with stc’s growth strategy, and it is expected to create value for stc and its shareholders. The MoU shall be effective for a period of 75 days from the date of its signature, and it can be extended with the mutual consent of both parties.
The two parties agreed a cash consideration of USD 2,392m (SAR 8,970m) for Vodafone’s 55% shareholding in Vodafone Egypt, equivalent to an Enterprise Value for 100% of Vodafone Egypt of USD 4,350m (SAR 16,312m) and that the final consideration to be determined upon signing of the definitive agreements.
Vodafone will work with stc exclusively in relation to the Proposed Transaction starting from the date of the Due Diligence for a period of 75 days and it can be extended with the mutual consent of both parties and the Potential Transaction does not involve any related parties to stc.
A binding agreement is yet to be entered into between stc and Vodafone with respect to the Potential Transaction. Any binding agreement with respect to the Potential Transaction will be subject to obtaining the approvals of the stc and Vodafone boards as well as any relevant regulatory approvals.