Telecom Egypt premises - Creative Commons via Wikimedia
CAIRO - 5 February 2020: Telecom Egypt said Wednesday that all options related to the sale of the Vodafone stake to Saudi Telecom Company are still being considered and studied.
“The company’s main goal is to ensure that its shareholders gain the maximum benefit out of the opportunities currently presented. Telecom Egypt shall announce any results it reaches in this regard in due course,” it clarified in a filing to the Egyptian Exchange (EGX).
It announced that the company is in the process of appointing an investment bank(s) to study such options and their consequences, in light of the existing shareholders’ agreement and all related Egyptian laws and regulations.
According to the filing, Telecom Egypt has contacted the Financial Regulatory Authority (FRA), as per the recommendation of its legal advisor, to determine whether this potential transaction would be subject to the provisions of Chapter Twelve of the Executive Regulations of the Egyptian Capital Market Law No. 95 / 1992 regarding tender offers.
By the end of January, 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).
CEO of Vodafone Egypt Alexander Froman commented that Vodafone Group will focus on the European market during the coming period, especially with regard to the deployment of the fifth generation mobile networks.
Commenting on the deal, Telecom Egypt said that it is closely following the aforementioned potential transaction to consider all of its possible investment options and opportunities.
Telecom Egypt owns 45 percent of Vodafone Egypt shares.
Telecom Egypt operates within the telecommunication services sector focusing on integrated telecommunication services. It has 17 subsidiaries operating across British Islands, Western Europe, Northern Africa and Middle East.
Established in 1998, Vodafone operates within the telecommunication services sector focusing on wireless telecommunication services. It has two subsidiaries operating across Egypt, working on internet software & services.