Vodafone ends talks to sell Egypt stake to Saudi STC

Vodafone had called off talks with the Saudi Telecom Company (STC) on the $2.4 billion sale of its 55 percent shareholding in Vodafone Egypt after a series of missed deadlines to complete the deal, Reuters reported.

“We believe that the Egyptian government is committed to an optimal framework for the telecoms sector, which will enable Vodafone Egypt to deliver on the country’s vision of digitisation and financial inclusion and create a technology hub to support our growth in the African region,” Vodafone Group CEO, Nick Read, said.

STC, Saudi Arabia’s biggest telecom operator, had inked a preliminary deal in January with the London-listed telecoms company to purchase the stake as it sought growth in the Arab world’s most populous nation.

In September, Vodafone had said that it remained in talks to complete the deal in the near future despite the expiry of an initial memorandum of understanding (MoU).

STC cited coronavirus-driven logistical challenges to seek extension twice to the initial agreement, first in April and then in July.

Vodafone Egypt is the country’s biggest mobile operator, with 44 million subscribers and a 40% market share.