Saudi Arabian operator STC was reportedly in negotiations to reduce its non-binding $2.39 billion bid for a majority stake in Vodafone Egypt.
Sources speaking to Bloomberg did not state a direct reason why for the request of a reduction. However, the deal saw multiple setbacks due to the Covid-19 (coronavirus) pandemic.
An attempt to secure a £2 billion loan for the acquisition was put on ice, and the deadline to complete the deal was extended twice with STC citing logistical challenges and desire to carry out proper due diligence for the multi-billion dollar purchase.
STC signed a memorandum of understanding (MoU) in January to acquire Vodafone Group’s 55% stake in its Egypt unit. State-owned Telecom Egypt holds the remaining 45% stake in the operator and prior to STC’s announcement, refuted it was in discussions to sell its share.
With STC’s valuation, Vodafone Egypt has an enterprise value of $4.35 billion. Vodafone Egypt is the largest operator in the country with more than 40 million mobile connections.