The regulator noted that this purchase was subject to a 1992 law that requires a mandatory tender for any outstanding shares in the company.
Egypt’s Financial Regulatory Authority has said that Saudi Telecom (STC) must offer to buy the remaining 45% stake in Vodafone Egypt after signing an agreement to buy a 55% stake in Vodafone arm in Egypt. The deal was for just under $2.4bn.
The 45% stake in question is held by Telecom Egypt, itself owned 80% by the Egyptian government and 20% as free-floating shares on the stock exchange.
While Telecom Egypt initially indicated that it had no intention of selling its 45% stake in Vodafone Egypt, it did note that it was “closely following” the STC–Vodafone deal’s proceedings “to consider all of its possible investment options and opportunities”.
With 44m subscribers and a 40% market share, Vodafone Egypt is the country’s biggest mobile operator.