OTH completes divestiture of Jordanian GSM operation
Orascom Telecom Holdings (OTH) has completed sale of its 91.6 percent stake sale in Jordanian subsidiary, Fastlink, to Kuwait’s Mobile Telecommunications Company (MTC) for $423.9 million. Sale proceeds have reportedly been utilized to reduce debt and fund OTH’s existing core operations.
As consideration for the stake in Fastlink, OTH receives $373.9 million in cash, release from a $20 million loan which MTC has assumed, along with an equity stake in Orascom Telecom Algeria-OTA, previously held by Fastlink. As a result of the transaction, OT’s stake in OTA will increase to approximately 65 percent.
The transaction indicates an equity value for Fastlink of $462.8 million, and an enterprise value of $645.9 million, equivalent to approximately 5x EBITDA FY02e. OTH has agreed an arrangement with primary network equipment suppliers, fully repaying debt obligations to
Alcatel and Siemens of approximately $187 million, and will be settling debt obligations to Motorola in full by mid-year.
OTH will also be settling other unsecured short term bilateral debt, and will direct some of the remaining proceeds to fund high growth areas of its core operations, specifically Orascom Telecom Algeria. The company is in advanced stages of the divestiture of nine out of 10 of its, sub-Saharan TeleCel subsidiaries, adding an official announcement on the matter should be expected within the coming few days. — (menareport.com)
© 2003 Mena Report (www.menareport.com)