Orascom telecom announces acquisition of largest independent GSM
operator in Africa
Egypt, Business, 2/28/2000

A statement by Orascom Telecom said today that it has signed an agreement to acquire 80% of Telecel International, one of the largest independent GSM mobile operators in Africa. Telecel International, which currently brings eleven GSM licenses to Orascom Telecom, was among the first to pioneer wireless technology in Sub-Saharan Africa.

This acquisition, valued at USD $413 million, is the largest acquisition ever by an Egyptian company in the history of Egypt, either inside or outside of Egypt. "With this move, we have become the biggest GSM cellular operator in the Middle East and Africa, moving towards our goal of becoming the third world operator" says, Orascom Telecom Chairman, Naguib Sawiris. According to Sawiris, "the success and learning we gained from building MobiNil in Egypt, supported the decision to go after emerging markets in the region." Orascom Telecom's GSM operations include Egypt, Chad, Syria, Jordan, Benin, Burundi, Republic of Congo, Gabon, Central African Republic, Ivory Coast, Niger, Nigeria, Togo, Zambia and Zimbabwe. With this acquisition, Orascom Telecom has become a major force in the telecommunications industry, potentially serving a total population of some 300 million in Africa and Arab World.

"This step is also an important milestone in Egypt's drive to become a hub and center for technology, financial transactions and capital market activities for the Middle East and Africa" according to Hassan Heikal, Managing Director of EFG Investment Banking, who brokered the deal on behalf of Orascom Telecom.

Telecel International, based in Johannesburg, South Africa, will remain under the management of its Chairman, Miko Rwayitare, while Orascom Telecom will hold majority on the Board of Directors of the Company. "The future in telecommunications is to develop synergy, and with Orascom Telecom we will have access to resources that will enable us to expand and be a dominant force in the industry," says Telecel International Chairman, Miko Rwayitare.

During the first half of 2000, Orascom Telecom expects to announce the acquisition of additional new GSM licenses that will materialize within the next year. Orascom Telecom is a front-runner finalist for the first GSM license in Yemen, and is cooperating with the government for the GSM license in Algeria. Later this year, Orascom Telecom is planning an IPO, raising USD $400-500 million through a Cairo and London Stock Exchange listing.

In addition to their wireless growth, Orascom Telecom is developing a third world Internet strategy to interface with its GSM operations. Orascom Telecom currently holds, through its Internet Service Provider subsidiaries, more than 60% market share in the Egyptian market. Orascom Telecom has licenses in all three privatized communications sectors-- wireless, fixed line and VSAT technologies. Besides wireless and Internet communications services, Orascom Telecom conducts business in technical management, VSAT satellite technology, fixed line pay phones and telecom-related support services.

Orascom Telecom is part of the Orascom group of companies, founded by Onsi Sawiris in 1950. Currently, Orascom is the largest employer in Egypt with 20,000 staff members. Orascom consists of five core companies: Orascom Telecom, Orascom Construction Industries, Orascom Projects & Tourism Developments, Orascom Hotel Holdings and Orascom Technology Systems. All of the Orascom companies, with the exception of OTS to be listed this year, are listed on the Cairo & Alexandria Stock Exchange.

Previous Stories:
  Arab steps to establish Arab company for communications   (2/16/2000)
  Egypt's Orascom Technologies won a running contract for the Mobile Net in Congo   (12/10/1999)
  Egyptian company raises bonds worth 100 million pounds   (11/17/1999)

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