Saudi giant telecom suspends purchase of Vodafone Egypt stake

Saudi Telecom Co (STC), the Kingdom’s giant telecoms operator, majorly owned by Saudi Arabia’s Public Investment Fund (PIF) has disclosed for the second time its decision to delay purchase of 55% stake off Vodafone Group in Egypt.

The telecom giant stated on Sunday 12 July, 2020, that it needed additional two months to complete the purchase of the stake which it said would be extended to September this year.

In a non-binding agreement signed in January, STC agreed to buy the majority stake for $2.4 billion, but for coronavirus-related logistic issues cited by the company, the purchase was extended by 90 days in April.

According to the STC, the recent extension is due to the same logistic challenges experienced that led to the suspension of the deal in the first place.

Vodafone Egypt has about 44 million subscribers with market share that stands at 40%. This makes it the largest mobile operator in the country.