Egypt’s Competition Authority (ECA) announced it will study a request filed by Telecom Egypt claiming the right of preemption in the potential sale of a majority stake in Vodafone Egypt to the Saudi Telecom Company (STC), Ahram Online reported. The watchdog stated it received a request from TE and is willing to undertake the necessary legal action according to the competition law and its executive regulations.
STC signed an MoU in January with Vodafone International to buy 55% of the shares of Vodafone Egypt, with an initial value of US$2.39 billion. Telecom Egypt owns 45% of Vodafone Egypt’s shares.
TE stated that it has contacted the management of Vodafone Egypt to confirm that it has sent a letter to the ECA inquiring whether TE’s right of first refusal, granted to the company in the articles of association of Vodafone Egypt, would be compatible with the Competition Protection Law.
TE stated that it has studied its legal position and confirmed all the rights that it has disclosed to its shareholders. These include its right of first refusal granted in the shareholders’ agreement and the articles of association of Vodafone Egypt; the right to accept a mandatory tender offer in accordance with the letter received from the Egyptian Financial Regulatory Authority; and any other rights guaranteed by the relevant Egyptian laws and the shareholders’ agreement.
TE reiterated that it will take all necessary measures to ensure the maximum benefit from these rights for all of its shareholders.
Full Content: Telecom Paper
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