January 29, 2020 / 6:35 AM / 22 days ago

Saudi Telecom signs non-binding deal to buy Vodafone stake in Egypt unit for $2.4 bln

DUBAI, Jan 29 (Reuters) - Saudi Arabia’s largest telecom STC said on Wednesday it has signed a preliminary agreement to buy Vodafone’s 55% stake in Vodafone Egypt for $2.4 billion.

The non-binding Memorandum of Understanding values Vodafone Egypt at $4.4 billion and is valid for 75 days from Wednesday, STC said in a bourse statement. It can be extended by mutual consent.

A binding agreement is subject to approvals by STC and Vodafone, and regulators. STC said no other parties were involved in the potential deal.

STC, also known as Saudi Telecom, is majority owned by Saudi Arabia’s state fund the Public Investment Fund (PIF).

Telecom Egypt, which owns a stake in Vodafone Egypt, said on Sunday it had no intention of selling its stake.

Reporting by Alexander Cornwell Editing by Shri Navaratnam

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