* Talks on sale of Vodafone Egypt stake terminated
* Vodafone CEO met Egyptian President at weekend
* $2.4 billion deal was initially struck in January
(Adds CEO meeting in Egypt, background)
LONDON, Dec 21 (Reuters) - Vodafone has ended talks
with the Saudi Telecom Company over the $2.4 billion
sale of its 55% shareholding in Vodafone Egypt, the
British company said on Monday, reaffirming its commitment to
the country.
STC, Saudi Arabia's biggest telecoms operator, had struck a
preliminary agreement in January with London-listed Vodafone to
buy the stake as it sought growth in the Arab world's most
populous nation.
But STC has since missed deadlines to complete the deal,
citing coronavirus-related logistical challenges to seek an
extension on two occasions.
Vodafone Group CEO Nick Read met Egyptian President Abdel
Fattah El-Sisi in Egypt at the weekend in a sign the investment
is likely to be maintained.
"Vodafone remains optimistic about our continued involvement
in the Egyptian market," a company spokesman said.
"Vodafone has been committed to Egypt for more than 20
years, and Vodafone Egypt has a talented team, a strong market
position and delivers an attractive return on capital."
STC did not immediately respond to a request for comment.
With 44 million subscribers and a 40% market share, Vodafone
Egypt is the country's biggest mobile operator.
Last month it acquired spectrum, with a ten-year term
through to 2030, to broaden its network capacity.
Egypt's financial regulator said in February STC would have
to offer to buy the 45% of Vodafone Egypt owned by Telecom Egypt
if it went ahead with the purchase of Vodafone's stake
in the company.
Vodafone had said in January that selling the stake was in
line with efforts to streamline its operations to focus on
Europe and sub-Saharan Africa.
(Reporting by Keith Weir; additional reporting by Yadarisa
Shabong in Bengaluru and Nadine Awadalla in Cairo; editing by
Louise Heavens and Mark Potter)