British telecoms group Vodafone said Wednesday it had agreed to sell its majority stake in its Egyptian unit to Saudi Telecom Company for $2.4 billion (2.2 billion euros).
"This transaction is consistent with our efforts to simplify the group to two differentiated, scaled geographic regions - Europe and sub-Saharan Africa," Vodafone chief executive Nick Read said in a statement.
He added that the cash sale for the 55-percent holding in Vodafone Egypt would additionally reduce group debt and unlock value for Vodafone shareholders.
STC, in which the state holds a 70-percent stake, said in a statement in Riyadh that the deal is non-binding and the final price of the stake will be determined upon signing a definitive agreement.
"The potential acquisition of Vodafone Egypt is in line with our expansion strategy in the MENA region," STC CEO Nasser al-Nasser said.
"The transaction, which is still subject to detailed due diligence, confirms STC's eagerness to maintain a leadership position" in the region, he said. STC is the largest Arab telecom firm in terms of market value with a capitalisation of $49 billion.
It has operations in Kuwait, Bahrain and Malaysia.
Vodafone Egypt is the leading player in the Egyptian mobile market and serves over 40 million customers.
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