The move has reportedly come as a result of sustained pressure in the course of this year on the share price of British-owned Vodafone, which has seen its stock lose about a quarter of its value year-to-date.
Newspaper Al-Mal quoted sources saying that Vodafone was sticking to the profitable exit from the Egyptian market scenario, especially as it intended to make investments in developing 5G technology for communication.
Vodafone signed an initial agreement with STC earlier this year for a possible sale of its 55 percent stake in Vodafone Egypt for $2.4 billion.
It also reduced the possibility that Telecom Egypt would make a parallel purchase offer to STC according to the right of pre-emption stipulated in the clauses of the shareholders’ agreement with Vodafone Global Group, but awaiting the final value to discuss the sale option.
Bloomberg earlier reported that STC was negotiating with Vodafone International to reduce the non-binding offer of about $2.4 billion to acquire 55 percent of Vodafone Egypt.
Investment banks, including Prime and Pharos, expected a decrease in the value of the planned offer by between 20 percent and 40 percent.
Vodafone signed a memorandum of understanding with STC on Jan. 29 regarding a possible sale of Vodafone’s 55 percent stake in Vodafone Egypt to STC for $2.4 billion.
Telecom Egypt owns 45 percent of Vodafone Egypt, while Vodafone International Group owns the remaining 55 percent.