Orascom Telecom Holding (OTH) has reported the sale of its 51.7 percent controlling equity stake in Ivory Coast GSM service business Telecel Loteny (TL) for $45 million in cash.
The divestiture advances OTH’s announced program to strengthen its financial profile and streamline its geographic presence. The company’s consolidated is net debt is forecasted to decrease by over $140 million pro forma once the sale is completed.
OTH acquired its stake in TL through its ownership in Telecel International in 2000, and grew TL’s subscriber base from 155,000 subscribers to 599,000, ending on December 2003, a 386 percent increase in four years.
OTH’s 100 percent-owned subsidiary Telecel agreed to sell its entire stake in TL. In addition, the purchaser has committed to a renewable three year licensing agreement for the use and maintenance of Telecel licenses and trademarks. The transaction is expected to be completed upon receipt of third party consents within ninety days.
After completion of the sale, OTH will continue to hold four sub-Sahara GSM mobile services operations in the Democratic Republic of Congo, Congo Brazzaville, Zimbabwe and Chad. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
