Today’s Trading Playbook
KEY THEMES
The MoU signed earlier 2020 between Saudi STC and Vodafone Group to acquire the latter’s 55% stake in Vodafone Egypt [VODE] was further extended today for another 60 days. The next date to look forward to is now Thursday, 10 September 2020. As a reminder, if STC makes a bid for Vodafone Group’s 55% stake in VODE, Telecom Egypt [ETEL], which owns the remaining 45%, will need to decide on its next step. We note three options for ETEL: (1) use its right of first refusal and acquire the 55% stake at the same price, (2) tag along with Vodafone Group and request that STC buys its 45% stake at the same company valuation, or (3) keep still and retain its 45% stake in VODE but re-negotiate another shareholder agreement with STC. ETEL’s financial advisors are yet to announce their recommendations on the subject. As mentioned here before, regardless of the outcome, ETEL is ridiculously cheap at current levels.
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