By: Faten El-Khouly
The Financial Supervisory Authority confirmed that the provisions of Chapter Twelve of Law No. 95 of 1992 regarding purchase offers for acquisitions apply to the "Vodafone Egypt" deal, a deal that was "digital scientist" by publishing its details during the week before last and entering official negotiations between a group STC "Saudi Telecom and Vodafone International Group" in its final stages to buy the last stake in "Vodafone Egypt" and the deal is expected to end in June 2020.
For his part, Telecom Egypt said, in a statement to the Stock Exchange Egypt, that it addressed the Egyptian financial supervision in accordance with the recommendation of its legal advisor to determine that the potential deal is subject to these provisions and that this potential transaction is subject to purchase offers with the intention of acquisition.
Section 12 of the Capital Market Law provides for the submission of purchase offers in the following cases, namely: purchase offers for shares and bonds convertible into shares in companies for which shares or bonds are convertible into shares on the Egyptian Stock Exchange, whether directly or indirectly, and on foreign deposit certificates Corresponding to it or offers of shares for shares and convertible bonds in companies that offered their shares in a public offering in the first market or through a public offering in the trading market, even if they were not listed on the stock exchange.
The newspaper "Digital World" revealed two weeks ago, negotiations between the Saudi Telecom Group "STC" to buy the stake of Vodafone International Group in Vodafone Egypt, which amounts to about 55%, at a value of $ 2.4 billion.
As a result, Nicholas Reed, CEO of Vodafone International Group, visited Cairo and met with Dr. Mostafa Madbouly, Prime Minister, in the presence of Dr. Amr Talaat, Minister of Communications and Information Technology,. He explained the group's view of selling its stake in Vodafone Egypt as well as signing a memorandum of understanding with a potential sale offer with the Saudi Telecom Group “stc” to start the process to neglect the ignorance, as well as meeting with representatives of Telecom Egypt, which owns about 45% of the shares of Vodafone Egypt, which has The right of pre-emption to purchase a global stake in Vodafone in Vodafone Egypt.
Telecom Egypt affirmed that all options are still under study regarding its stake in Vodafone Egypt, adding that it is in the process of appointing an investment bank to study the investment options and opportunities available regarding its stake in Vodafone Egypt and its implications.
Telecom Egypt said last week that it was studying options to deal with its investments in Vodafone Egypt.
The company added that it is closely following the procedures of Vodafone International intending to sell its stake in Vodafone Egypt to Saudi Telecom Company.
Telecom Egypt indicated that the study of alternatives comes in light of its rights according to the shareholders agreement, and in light of the final form of the planned acquisition.
Alexander Froman Courtel - CEO of Vodafone Egypt had assured "Digital World" that Vodafone’s global exit from the telecom market is a purely investment decision and is subject to the desire of the global group to provide financial investments to enhance its presence in the European market and the African market and exit from the Middle East region as well as moving to Fifth-generation mobile technologies in these markets.
He added that a memorandum of understanding was signed for the potential sale between the Saudi telecom company “STC” and Vodafone International Group, as it represents a very good deal for the Egyptian economy and reflects the stability of the Egyptian market and confirms that the market and the general climate in Egypt are capable of growth and the Egyptian telecommunications sector has become one of the most growing economic sectors
