Saudi Telecom Company is in talks to reduce its non-binding $2.39bn offer for a stake in Vodafone Egypt, according to Bloomberg.
The move has reportedly come as a result of sustained pressure on the share price of Vodafone, which has seen its stock lose about a quarter of its value year-to-date. STC had said that the offer gives the Egyptian business an enterprise value of $4.35bn.
Earlier in January, Vodafone had signed a memorandum of understanding with STC regarding a possible sale of Vodafone’s 55% stake in Vodafone Egypt. The MoU was extended for a 90-day period in April, due to the coronavirus pandemic, while a further 60-day extension was confirmed in July.
Currently, Telecom Egypt owns 45% of Vodafone Egypt, while Vodafone International Group owns the remaining 55%.
If the deal goes through, Egyptian market regulations would require Saudi Telecom to submit a mandatory tender offer for all of Vodafone Egypt, including the stake held by Telecom Egypt.