JSE-listed cellphone group MTN has confirmed what market watchers already knew: that it is in talks to buy part or all of Egyptian cellular operator Orascom, which has interests in Algeria, Pakistan and Bangladesh, as well as a number of markets in sub-Saharan Africa.
“MTN is in discussions with Orascom Telecom’s parent company, Weather Investments, which may or may not lead to a transaction relating to the acquisition by MTN of control of Orascom and/or certain of its businesses,” MTN says in a statement issued to the JSE’s Sens news service on Wednesday.
MTN describes Orascom as a “leading international telecommunications company operating GSM networks in high-growth markets in the Middle East, Africa and Asia, having a total population under license of approximately 510m, with an average mobile telephony penetration of approximately 49% as of 31 December 2009”.
“Orascom operates GSM networks in Algeria (OTA), Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (Banglalink), North Korea (Koryolink) and, through its indirect equity shareholding in Globalive Wireless, Canada (Wind Mobile),” MTN says.
“In addition it has an indirect equity ownership in Telecel Zimbabwe and, through its subsidiary Telecel Globe, Orascom Telecom also operates in Burundi, the Central African Republic and Namibia.”
Orascom, which is listed on the Cairo and Alexandria Stock Exchange, had almost 93m subscribers at the end of last year.
Reports have suggested that MTN could offer as much as US$8bn for Orascom’s assets. MTN has reportedly approached various banks and is seeking to raise $5bn to help fund a deal.
The talks involving Orascom follow last year’s failed merger talks between MTN and India’s largest operator, Bharti Airtel. MTN president and CEO Phuthuma Nhleko (pictured), who is due to leave the mobile operator in February 2011, may be keen to do a final big deal before he hands the reins to a successor. — Staff reporter, TechCentral
- Subscribe to our free daily newsletter
- Follow us on Twitter or on Facebook