Different scenarios for future of Vodafone Egypt acquisition

Telecom Egypt now faces different choices for its 45 percent stake in Vodafone Egypt, according to Amr Hussein Elalfy, Head of Research at Prime Securities.

Telecom Egypt (TE) is also awaiting further developments in the situation with which it would be able to consider the available options.

TE may uses its right of pre-emption and submit a compulsory purchase offer for its shares resorting to getting a push from banks to finance the transaction.

Elalfy added Telecom may sell its stake in Vodafone Egypt with same price of Vodafone acquisition deals assuming that the final deal price is suitable, then STC may submit a mandatory tender offer (MTO) for the 44.8% stake in Vodafone Egypt owned by Telecom Egypt (TE) and the 0.2% held by minority shareholders.

Telecom Egypt also may partially withdraw from its stake in Vodafone through selling 25 percent and keeping 20 percent for example.