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Saudi Telecom (stc) might be turning its sights to Vodafone Portugal after the telecom giant’s bid to buy Altice Portugal reportedly failed, Portuguese newspaper Jornal Económico reports. Stc is being advised by market experts to consider a move for Vodafone Portugal, according to the media outlet.
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Timing is everything: A possible play by stc for Vodafone Portugal comes after Vodafone Portugal was told by Portugal’s competition regulator that it couldn’t acquire Nowo, the country’s fourth-largest network operator. Vodafone Portugal is currently the country’s third largest operator.
REMEMBER- Stc has been looking to expand its Iberian footprint: Stc, which is 64% owned by the Public Investment Fund, acquired a 9.9.% stake in Spain’s Telefonica in September last year to become the telecom giant’s top shareholder. That prompted the Spanish government to embarked on a plan to increase its stake in the telecom operator to 10% to ensure stc doesn’t become Telefonica’s single largest shareholder.
Stc and Patrick Drahi, the owner of European telecom group Altice, reportedly ended talks earlier this month that would have seen stc buy Altice’s telecoms business in Portugal, according to Portuguese business newspaper Eco. Talks reportedly collapsed after the two disagreed on the final price, Eco cites sources as saying. Stc submitted in March the highest binding offer to acquire Altice Portugal, which Eco estimates is worth c. USD 8 bn. However, Drahi was hoping to bag a lofty EUR 10 bn from the sale, a price tag that scared off most potential buyers.
