STC obliged to buy out Telecom Egypt if Vodafone bid succeeds

STC obliged to buy out Telecom Egypt if Vodafone bid succeeds

STC must make an offer on Telecom Egypt’s 44.94% stake of Vodafone Egypt if its acquisition of Vodafone Group’s 54.93% stake in the unit closes successfully.

The Egyptian Financial Regulatory Authority (FRA) confirmed that a 1992 law would legally bind STC into making an offer on outstanding shares in the unit if its US$2.4 billion offer for Vodafone’s stake is accepted.

In a statement, Telecom Egypt said that it was “closely following the aforementioned potential transaction to consider all of its possible investment options and opportunities.”

Last week, STC entered a non-binding MoU with Vodafone Group to purchase its holding in Vodafone Egypt.

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