Kuwait’s Mobile Telecommunications Company (MTC) has signed an agreement with Egypt’s Orascom Telecom Holding (OTH) to acquire its 91.6 percent equity interest in the Jordan Mobile Telephone Services Company (Fastlink). MTC currently owns 4.9 percent equity interest in Fastlink.
The consideration is $423.9 million in total. The acquisition, which is subject to the regulatory approval of the Telecommunications Regulatory Commission of Jordan (TRC), is expected to be completed by the second week of January 2003, at which point MTC will hold indirectly approximately a 96.5 percent equity interest in Fastlink.
“The proceeds of the transaction will allow OTH to strengthen its balance sheet and substantially reduce its debt obligations . The company will remain focused on its high growth assets in Algeria, Egypt, Pakistan and Tunisia, and should reach a total of 5.4 million controlled subscribers by the end of 2002,” stated Chairman of OTH, Naguib Sawiris.
The National Bank of Kuwait (NBK) has acted as the sole financial advisor to MTC in connection with this transaction. EFG Hermes Investment Banking brokered the transaction between MTC and OTH.
OTH was launched in 1998 in partnership with telecommunications giants France Telecom and Motorola for the purpose of creating Mobinil, the first privately owned mobile network in Egypt. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
