Saudi Telecom Co (STC), Saudi Arabia’s largest telecoms operator, is re-negotiating to reduce its non-binding USD 2.39 billion offer for 55% stake in Vodafone Egypt, according to Blomberg citing two people familiar with the negotiations.

With about 44 million subscribers and a 40% market share, Vodafone Egypt is the country’s biggest mobile operator.

In January, STC inked a non-binding agreement for a possible acquisition of the 55% from Vodafone Global for USD 2.39 billion an enterprise valuation of USD 4.35 Billion. The agreement was extended for 90 days in April, due to the coronavirus pandemic, and a further 60 days in July.

Egypt’s state-owned operator, Telecom Egypt, owns the remaining 45% stake in Vodafone Egypt and is reportedly considering buying out the remaining 55%.

According to newspaper Al-Borsa, Telecom Egypt has commissioned Hermes and Citibank to study its investment opportunities in the deal, the importance of the acquisition leveraging its contractual right of pre-emption.

Vodafone Global recently confirmed that it had completed all due diligence procedures regarding the possible sale of its stake and that it is still in talks with STC to complete the deal in the near future.

If the deal goes through, Egyptian market regulations would require Saudi Telecom to submit a mandatory tender offer for all of Vodafone Egypt, including the stake held by Telecom Egypt.