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DUBAI, Jan 29 (Reuters) - Vodafone Group has agreed
a preliminary deal to sell its 55% stake in its Egyptian unit to
Saudi Arabia's largest telecoms operator STC for $2.4
billion, the companies said on Wednesday.
The non-binding deal values Vodafone Egypt at $4.4 billion
and the two companies have agreed to long-term use of the
Vodafone brand and other services in Egypt.
Selling the stake is in line with Vodafone efforts to
streamline its operations to focus on Europe and sub-Saharan
Africa, Vodafone Chief Executive Nick Read said.
"It will reduce our net debt and unlock value for our
shareholders," he said.
Vodafone said the transaction is expected to close by June.
STC said the non-binding agreement was valid for 75 days from
Wednesday and could be extended by mutual consent.
"Vodafone Egypt is the leading player in the Egyptian mobile
market and we look forward to contributing further to its
continuing success," said STC Chief Executive Nasser al-Nasser.
The binding agreement is subject to approvals by STC and
Vodafone, and regulators. STC said no other parties were
involved in the potential deal.
STC, also known as Saudi Telecom, is majority owned by Saudi
Arabia's state fund the Public Investment Fund (PIF).
Telecom Egypt, which owns a stake in Vodafone
Egypt, said on Sunday it had no intention of selling its stake.
(Reporting by Alexander Cornwell & Stephen Kalin
Editing by Shri Navaratnam and Louise Heavens)
Vodafone (VOD)
