14th Sep 2020 07:01
(Alliance News) - Vodafone Group PLC on Sunday reported progress on the sale of its majority 55% holding in its Egypt business to Saudi Telecom Co for USD2.39 billion.
The FTSE 100-listed telecoms firm said due diligence has been substantively completed, adding that despite the expiry of the memorandum of understanding, it remains in discussion with Saudi Telecom to finalise the transaction in the near future.
"Vodafone now looks to stc and Telecom Egypt to find a suitable agreement to enable the transaction to close," the company said.
Telecom Egypt holds the remaining 45% stake in Vodafone's Egyptian business.
The sale was first announced in January, with Vodafone saying at the time that despite the disposal, it would continue to have a "significant presence in Egypt", including a partnership agreement with Saudi Telecom. Vodafone Egypt contributed EUR1.11 billion in revenue to the telecommunications firm in the year to March 2019.
The transaction was originally expected to close in June 2020.
This sale comes after Vodafone in December agreed to sell its Malta unit to Monaco Telecom SAM for EUR250 million. In July, it completed the disposal of its New Zealand unit for EUR2.0 billion to a consortium featuring investment firm Infratil Ltd and Canadian alternative asset manager Brookfield Asset Management Inc.
By Ife Taiwo; [email protected]
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