Saudi telecoms firm ends talks to take over Egyptian company

The Saudi Telecom Company (STC) has announced the end of the memorandum of understanding with Vodafone to acquire its 55 per cent stake in Vodafone-Egypt after ending talks on an agreement to conclude the deal.

The company revealed the details in a statement published on the Saudi Stock Exchange website. Although talks have been ended, explained STC, it has agreed with Vodafone to maintain a dialogue.

STC had extended the MoU in April for a period of 90 days, indicating that the two companies would work during this time to move ahead with the agreement. Any substantive developments were to be announced in due course.

According to Bloomberg, anonymous sources claim that STC is negotiating with Vodafone to reduce the value of the offer submitted by the Saudi company to buy its share in Vodafone-Egypt. The original offer was apparently $2.39 billion for 55 per cent of the company, in which Telecom Egypt holds almost all of the remaining share.

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