If STC makes the offer, analysts predict that Telecom Egypt might actually sell some of its stocks
At the end of January, Vodafone signed an initial agreement to sell a 55% stake it has in Vodafone Egypt in the company to Saudi Telecom Company (STC) for $2.4 billion. Now, Egypt’s financial regular says if STC wants Vodafone’s 55%, they must offer to buy Telecom Egypt’s 45% share too, citing a 1992 law, which requires a mandatory tender for any outstanding shares.
If STC makes said offer, analysts predict that Telecom Egypt might actually sell some of its stocks because it could use the extra funds following the launch of its own mobile network, called We, in 2017.
As STC continues to expand its reach, the operator is also digging deeper into 5G, most recently focusing on ensuring the security of its 5G networks.
In an interview with the Middle Eastern publication The National, STC’s Cybersecurity Enablement Director Arwa Abdulaziz Alhamad said the telecom’s position in the market is critical because is handles almost 70% of the data traffic across the region.
“[There is a] huge responsibility to secure consumers, businesses and the kingdom’s tech infrastructure,” Alhamad explained.
“5G is not only about speed and millions of connected devices, it will open new vulnerabilities. We are working with local and global entities to have a strategy,” she added.
Alhamad also referenced a previous cyberattack launched on Saudi Arabia in 2012, when the Shamoon virus compromised 35,000 computers at Saudi Aramco, the largest oil-producing company in the world.
“We have learnt from past experiences,” she stated. “One of the main lessons is the importance of collaboration and sharing of knowledge and experience.”
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