14th Sep 2020 08:38
(Alliance News) - Telecom Egypt on Monday said it has not received any proposals from Vodafone Group PLC or Saudi Telecom Co after Vodafone reported progress on the USD2.39 billion sale of its majority 55% holding in its Egypt business to Saudi Telecom.
On Sunday, FTSE 100-listed telecoms firm Vodafone had said due diligence has been substantively completed on the deal, 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," Vodafone said.
Telecom Egypt holds the remaining 45% stake in Vodafone's Egyptian business.
However, Telecom Egypt said on Monday it hasn't received proposals from either company and does not "have insight into the state of discussion or terms being discussed between the parties".
"Telecom Egypt has noted public statements by the parties that discussions between them are ongoing and note the implicit and direct references to Telecom Egypt in STC and Vodafone announcements. The inference that Telecom Egypt has a role to play in assisting Vodafone Group and STC to conclude a transaction is unclear and without foundation," the firm noted.
Telecom Egypt said that any action taken by it would depend on the terms of any proposals submitted to it, adding it is confident of its ability to execute a number of strategic options including the right of first refusal and considering accepting a mandatory tender offer for its Vodafone Egypt stake.
The sale of Vodafone's majority stake 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.
Shares in Vodafone were trading 0.3% lower at 109.90 pence each on Monday morning in London.
By Ife Taiwo; [email protected]
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