Orascom Telecom-OT announced in its press conference, held Monday January 15 after the market close, that it has paid a total $171 million to acquire Motorola’s stakes in Jordan Mobile Telephone Services Ltd.–FastLink (26.1 percent), Pakistan Mobile Communication Ltd.–MobiLink (30.1 percent) and the MobiNiL Telecommunication Consortium –MTC (10.15 percent).
Accordingly, OT has raised its stake in The Egyptian Company for Mobile Services –ECMS from 26.1 percent to 31.3 percent.
From the total amount paid, $101 million was for the MTC deal, implying a price of $19.60 per share or
LE73.50 for ECMS based on 5,175,515 shares. The FastLink and MobiLink deals together accounted for the remaining $70 million. The total value of the deal will be paid in 4 installments, till 2003.
OT’s chairman Naguib Sawiris stated that this deal is part of OT’s investment strategy for the year 2001.
Moreover, he added that OT is strengthening its position by concentrating investments on countries with high return on investment in order to maximize shareholders’value. OT has allocated 53 percent of its budget in 2001 for Egypt, Jordan and Pakistan. These acquisitions will be financed through proceeds from OT’s IPO and a recently approved $200 million syndicated loan.
Both the FastLink and MobiLink deals were executed at huge discounts to their respective discount cash flow values. In this aspect, Sawiris commented that OT has the right of first refusal in both companies. In addition, any other potential buyer would have found himself with a minority stake versus OT’s position, thereby making these stakes unattractive to other buyers. Global telecom operators venture into networks in order to assume control and impose their corporate philosophy.
Operational Developments Syria:
Sawiris also announced that the results of the tender offer for the GSM license in Syria should be issued this week. Nigeria Last week, the Nigerian Communication Commission confirmed that five qualified bidders for the digital mobile network will participate in the auction this week. Three of the five qualified bidders will be granted licenses to operate in Nigeria LinkdotNet LinkdotNet was awarded a Class A license by the Telecom Regulatory Authority. The license will expand its range of communication services, integrate more technologies for its customers and allow the company to enjoy increased revenue streams thorough internet backbone development.
prime Securities S.A.E.
© 2001 Mena Report (www.menareport.com)
