An informed source suggested, using Telecom Egypt, the right of pre-emption to purchase Vodafone’s global stake in Vodafone Egypt, after choosing a strong alliance that includes investment banks Hermes Financial Group and Citibank, to determine the alternatives that Telecom Egypt deals with its share of about 45% in Vodafone Egypt.
Two weeks ago, Vodafone International Group announced the signing of a Memorandum of Understanding (MoU) to sell a potential stake of 55% in Vodafone Egypt to STC for 2.393 billion dollars, which is equivalent to more than 37 billion pounds.
The ownership structure of the Vodafone Egypt company is divided between 55% for Vodafone International, which is the target percentage of the Saudi purchase offer, 44.8% for Telecom Egypt and the rest 0.2% for small shareholders.
According to the shareholders ’rights, Telecom Egypt is entitled to purchase the remaining stake in Vodafone, provided that a similar offer is submitted by STC.
The source assured, for “The Seventh Day”, that Telecom Egypt may submit a parallel offer to the Saudi Telecom Company to purchase the rest of the Vodafone Egypt shares, according to the “Right of pre-emption”, which obliges the two companies to present the deal to Telecom Egypt as it possesses the remaining 45% of Vodafone Egypt shares.
The source said that the Financial Supervisory Authority stated in an official letter that the potential deal is subject to the provisions of Chapter Twelve of the Executive Regulations of the Capital Market Law No. 95 of 1992 regarding purchase offers with the intent to acquire or not from the Executive Regulations.
Telecom Egypt announced that it is in the process of appointing an investment bank to study the options and implications of the STC acquisition of Vodafone’s global stake in Vodafone Egypt. Indeed, it appointed yesterday the investment banks Hermes and Citibank.
Telecom Egypt confirmed, in a previous statement, that it had addressed the Financial Supervisory Authority, in accordance with the recommendation of its legal advisor, to find out that the potential deal is subject to the provisions of Chapter Twelve of the Executive Regulations of the Capital Market Law No. 95 of 1992 regarding purchase offers with the intention of acquisitions or not. Subject to the potential deal with the provisions of the aforementioned section of the executive regulations.
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