(Alliance News) - Vodafone Group PLC on Monday said its discussions with Saudi Telecom Co for the potential sale of the telecommunication firm's 55% interest in Vodafone Egypt have been terminated.
Vodafone gave no reason for ending the talks. However, Chief Executive Nick Read said: "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 digitization and financial inclusion and create a technology hub to support our growth in the African region," said Chief Executive Officer Nick Read.
Back in late January, Vodafone announced a deal to sell the majority interest in its Egypt business to Saudi Telecom for USD2.39 billion, giving Vodafone Egypt an enterprise value of USD4.35 billion.
The transaction was expected to close in June after regulatory approval. That deadline missed, Vodafone in September announced the completion of due diligence on the transaction and said it remains in discussions with Saudi Telecom to finalise the transaction in the near future.
However Telecom Egypt - which holds the remaining 45% stake in Vodafone Egypt - said it had not received proposals from either company and does not "have insight into the state of discussion or terms being discussed between the parties".
"Telecom Egypt has noted public statements by the parties that discussions between them are ongoing and note the implicit and direct references to Telecom Egypt in STC and Vodafone announcements. 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," the firm said September.
Shares in Vodafone were down 2.1% at 123.30 pence on Monday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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