Saudi Telecom in talks to reduce its $2.39 billion offer for Vodafone Egypt

Saudi Arabia’s largest telecoms operator Saudi Telecom Co (STC) is in discussions to cut its non-binding $2.39 billion offer to buy a stake in Vodafone Egypt, two people with direct knowledge of the talks told Bloomberg on Monday.

The discussions come as a deadline nears for the Saudi company to move ahead with its non-binding offer first made in January.

In July, STC extended the memorandum of understanding for 60 days due to the impact of the coronavirus pandemic.

STC is seeking to buy Vodafone’s 55 percent stake in Vodafone Egypt, the remaining part of which is held by state-owned Telecom Egypt. It had said that the offer gives the Egyptian business an enterprise value worth up to $4.35 billion.

The two people, who include an Egyptian official, had not provided any further details and requested anonymity because they were not authorised to comment on the ongoing talks.

Bloomberg could not reach STC spokesperson for comment, while spokesmen for Vodafone Group Plc and Vodafone Egypt declined to comment.