Orascom Buys Telecel In Egypt’s Biggest Acquisition

Orascom Telecom, which holds the majority of the ISP market share in Egypt,
this week bought 80 percent of African GSM mobile operator Telecel
International for $413 million.

Telecel International, which says it was among the first to pioneer wireless
technology in Sub-Saharan Africa, will bring its 11 GSM licenses to Orascom
Telecom. 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.

In addition to their wireless growth, Orascom Telecom is developing an
Internet strategy to interface with its GSM operations. Orascom Telecom
currently holds, through its ISP subsidiaries, more than 60 percent of the
market share in Egypt.

This acquisitionis the largest known buy made by an Egyptian company, either
in a domestic or overseas deal.

“This step is also an important milestone in Egypts 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.

During the first half of this year, Orascom Telecom expects to announce the
acquisition of additional GSM licenses. 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, in
the aim of raising $400-500 million through a Cairo and London Stock
Exchange listing.

Orascom Telecom is the only company in Egypt with licenses all three
privatised communications sectors wireless, fixed line and VSAT
technologies.