CAIRO - 29 January 2020: Vodafone Group announced the signing of a memorandum of understanding (MoU) to sell its potential 55 percent stake in Vodafone Egypt to Saudi Telecom Company (STC) for $2.392 billion (LE 37 billion).
Here are the most prominent pieces of information about the newcomer to the Egyptian market, STC:
- Saudi Telecom Company "STC" is the same as Telecom Egypt, as it is the national company in providing telecommunications services in Saudi Arabia.
- Founded by Cabinet Resolution No. 171 of September 9, 2002, and Royal Decree No. M / 35 of April 21, 1998, as a Saudi joint stock company, in accordance with Cabinet Resolution No. 213 of April 20, 1998, which approved the company's articles of association.
- STC's ownership structure is divided between 70 percent owned by the Public Investment Fund, 16.23 percent free shares, 7 percent for the General Organization for Social Insurance, and 6.77 percent for the Public Pension Agency.
- Competitors of Saudi Telecom Company "STC" in Saudi Arabia, are Etihad Communications Company "Mobily", the Saudi Mobile Telecommunications Company "Zain", and Etihad Jawara Company for Communications and Information Technology “Lebara Mobile”, and the Union Mobile Company “Virgin Mobile”.
- In May 2019, Saudi Telecom launched the first live sites for the fifth generation network after completing its experiments, for the first time in the Middle East and North Africa.
- Saudi Telecom Company expanded abroad by acquiring 25 percent of the Axis Group in Malaysia, which operates in the telecommunications field with a value of $ 3.04 billion, which in turn operates a number of mobile phone networks in Malaysia, Indonesia and India. Moreover, It also obtained 26 percent of the third mobile phone license in Kuwait, with a value of $ 924.6 million.
- STC acquired 35% of the shareholders ’shares in UAE-based Oger Telecom, in the beginning of 2008, in a deal valued at $ 2.85 billion.
- STC acquires various proportions in a number of local and regional institutions and companies, including Arabsat Corporation for Satellite Communications and working in the field of satellite broadcasting, the Arab Sea Cable Company linking the two banks of the Red Sea (Saudi Arabia - Sudan). The company acquired 100 percent of the provider AllNet internet services, in addition to the Saudi commercial company.
- STC held an 8.8 percent direct stake in Careem but it sold it with the acquisition by Uber of Karim Company for approximately $ 3.1 billion, so that the share of Saudi Telecom Company from this acquisition reached $ 274 million.
- The capital of Saudi Telecom Company STC is about SAR 20 billion, and its market value is about SAR 186.4 billion.
- During 2019, STC achieved revenues of SAR 54.4 billion, marking a growth rate of 4.64 percent. Its net profit reached SAR 10.755 billion.
- According to the Brand Finance Index, Saudi Telecom Company owns the most expensive brands in the Middle East for 2019 with a value of SAR 26.6 billion riyals ($7.1 billion), and is ranked among the top 50 digital companies in the world in the year, and the first in the Middle East.
CAIRO - 29 January 2020: Egyptian Prime Minister Mostafa Madbouli met Tuesday with the CEO of Vodafone group, Nicholas Read, along with MCIT Amr Tala'at. The CEO Nicholas Read said that he met the Egyptian premier to officially inform the Egyptian government that Vodafone group has signed a memorandum of understanding with the Saudi giant tech STC, adding that the latter will probably buy 55 percent of International Vodafone's share in Vodafone Egypt.