The Saudi Telecom Company (STC) has announced that it requires more time to complete the proposed acquisition of its stake in Vodafone Egypt, citing disruption from the Coronavirus pandemic as the reason for the delay.
In a filing to the Saudi Arabian bourse, Tadawul, Vodafone Egypt said that it would require an additional 60 days to complete the transaction.
“STC announces that due to the logistical challenges caused by the COVID-19 pandemic, the parties need more time to complete the processes related to the transaction, including the due diligence and they have therefore agreed to extend the MoU for 60 days starting from today,” a bourse filing read.
This is the second time that STC has requested extra time to complete the deal, with the Saudi based telco already having extended the deadline by 90 days in April.
STC has agreed to purchase Vodafone Group’s 55 per cent stake in Vodafone Egypt for $2.4 billion, however, the current global Covid 19 pandemic has delayed the process. The remaining 45 per cent stake in the company is held by Telecom Egypt.
The move will be a key opportunity for STC to expand its presence in North Africa.
The deal values Vodafone Egypt at $4.35 billion. Vodafone Egypt added a total of 230,000 new subscribers to its books last year, boosting its total number to 40.2 million subscribers.