Vodafone Group Plc (VOD.L)
- Reuters
Vodafone says STC 'substantively' completed due diligence on Egypt unit stake sale
"Vodafone now looks to STC and Telecom Egypt to find a suitable agreement to enable the transaction to close," Vodafone Group said in a statement. On Sunday, STC said no agreement had been reached to buy the stake in Vodafone Egpyt, and that the parties have agreed to keep dialogue open. With 44 million subscribers and a 40% market share, Vodafone Egypt is the country's biggest mobile operator.
- Bloomberg
Vodafone Remains in Talks to Sell Stake in Egypt Unit to STC
(Bloomberg) -- Vodafone Group Plc said it remains in talks to sell its Egyptian business to Saudi Telecom Co. after failing to finalize the terms before a deadline.Vodafone “remains in discussions with Saudi Telecom to finalize the transaction in the near future,” and “now looks to Saudi Telecom and Telecom Egypt to find a suitable agreement to enable the transaction to close,” the U.K.-based mobile carrier said in a statement.Saudi Telecom offered to pay $2.39 billion for a 55% stake in Vodafone Egypt in January. It had to extend a memorandum of understanding to acquire the stake in July because of delays to due diligence amid restrictions in place to halt the spread of the coronavirus. The remaining shares in Vodafone Egypt are held by Telecom Egypt.Saudi Telecom said in a separate statement that its non-binding MoU to acquire the stake expired without a deal, and that it will continue talks with Vodafone. The company had been looking to reduce its offer for the stake in Vodafone Egypt, people familiar told Bloomberg earlier this month.Telecom Egypt fell as much as 7.7% in Cairo, the most within members of the EGX 30, while STC retreated as much as 0.3% in Riyadh.State-run Telecom Egypt said it hasn’t received proposals from either company and doesn’t “have insight into the state of discussion or terms being discussed between the parties.” The telecom firm noted “that the inference that Telecom Egypt has a role to play in assisting Vodafone Group and STC to conclude a transaction is unclear and without foundation.”Any action Telecom Egypt takes will depend on the terms of any proposals submitted to it, the company said, adding it was “confident of its ability to execute a number of strategic options” including right of first refusal and considering accepting a mandatory tender offer for its Vodafone Egypt stake.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.Analysts from Cairo-based investment bank Naeem Holding said in a research note that while the deal seems to have been put on hold or canceled, “going by STC’s statement that room for dialogue still remains open with Vodafone,” the MoU could be “reactivated” if STC was permitted to buy just 55% of Vodafone Egypt.(Updates with Telecom Egypt statement from sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Vodafone CEO warns Italy single broadband network could be step back - press
The head of Vodafone Group <VOD.L> said Italy's plan to create a single fast broadband network in which Telecom Italia <TLIT.MI> would hold a majority stake could be a step backwards since it effectively amounted to renationalisation and re-monopolisation. In an article in Politico on Wednesday, Nick Read said Rome was looking to recreate the fixed-line monopoly that previous Italian governments and EU institutions had dismantled. "This would leave would-be fixed broadband providers with only one seller of wholesale access to the combined network - yet again Telecom Italia (TIM)," he said.
