Saudi Telecom Company (STC) announced that it would purchase a 55 percent controlling stake in Vodafone Egypt for $2.39 billion on Wednesday.
The deal will give the North African telecom operator a total enterprise value of $4.35 billion, a statement from STC said.
“The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region,” said STC CEO Nasser al-Nasser in the statement.
“The transaction, which is still subject to detailed due diligence, confirms STC’s eagerness to maintain a leadership position not only in the KSA, but also in the wider region. Vodafone Egypt is the leading player in the Egyptian mobile market and we look forward to contributing further to its continuing success,” he added.
Vodafone Egypt is the largest mobile operator in a country with a population of around 100 million. The deal will offer STC access to this market, likely an important move for a telecom operator that still relies heavily on its domestic revenue.
“I am deeply proud of our business in Egypt, being the clear number one leader in the market. Under stc, I believe they will continue to flourish,” said Nick Read, CEO of Vodafone.
“This transaction is consistent with our efforts to simplify the Group to two differentiated, scaled geographic regions - Europe and sub-Saharan Africa. Additionally, it will reduce our net debt and unlock value for our shareholders,” he said.