ADIC MENA Partners, LP, a private equity fund advised by ADIC PE Management LLC, a subsidiary of the Abu Dhabi Investment Company, has agreed together with other investors to purchase OrasInvest from Orascom Telecom Holding SAE (OTH), in a leveraged buyout worth USD 180 million. OrasInvest, a telecom support company that focuses on mobile telecommunication tower construction as well as other corporate services such as inventory management, packaging, delivery, and collection, is headquartered in Cairo, Egypt and has operations in seven countries including Egypt, Algeria, Tunisia, Pakistan, Bangladesh, UAE, and Saudi Arabia. OrasInvest is expected to end 2008 with revenues in excess of USD 175 million.
Commenting on the acquisition, Robert Wages, Executive Director of Abu Dhabi Investment Company’s Private Equity Group, said, “ADIC MENA Partners is very pleased to be investing in OrasInvest, given the company’s potential for growth supporting Orascom Telecom and other leading telecom operators. We are confident this transaction will illustrate successfully the role that private equity can play in assisting market-leading businesses like Orascom Telecom achieve their goals for corporate realignment.”
“As announced at the beginning of the year, OTH is looking at disposing its non GSM businesses and OrasInvest is the first step in this direction. OrasInvest has been instrumental to the growth of OTH. In this rapidly changing environment, the sale of OrasInvest to ADIC MENA Partners allows us to outsource non-core assets and activities, while continuing to benefit from its goods and services provided. The sale of OrasInvest, which was decided in early 2008, will also result in a significant profit for the company and in significant value creation for our shareholders,” said Naguib Sawiris, Orascom Telecom Chairman and CEO.
Alwaleed Abdelrahman, Senior Vice President at Abu Dhabi Investment Company’s Private Equity Group who led the transaction for ADIC MENA Partners added, “The rapid evolution of the telecom sector in the region provides opportunities to achieve superior investment returns. OrasInvest is particularly well-positioned to capitalize on the growth of the sector.”
About ADIC MENA Partners LP Fund
Abu Dhabi Investment Company’s Private Equity division launched the ADIC MENA Partners LP fund, a USD 500 million buy-out fund with a commitment from Abu Dhabi Investment Company of USD 100 million, which will be closed early next year. The fund’s proceeds will be invested in buying-out regional companies for majority stakes. The ideal transaction size for one company would be between USD 75-200 million and the countries focused on include MENA, Pakistan, and Turkey. The fund is being marketed to Institutional Investors and High Net-Worth Individuals (HNWIs), as the minimum subscription is USD 5 million.
About ADIC (Abu Dhabi Investment Company)
Abu Dhabi Investment Company (ADIC), the first investment company in the United Arab Emirates, is one of the leading financial services firms in the region. Established by Emiri Decree on February 24, 1977, and owned by Abu Dhabi Investment Council, ADIC has delivered excellence in treasury and credit services, loan syndication, equity and debt underwriting, financial advisory, asset management and brokerage across a range of asset classes. As a result, the company has earned a reputation for professionalism, integrity, innovation, and market knowledge.
Pursuing a focused approach, ADIC today leverages its investment expertise across four strategic areas: Asset Management, Private Equity, Real Estate, and Infrastructure. In this way, the organization is able to offer targeted products and services to meet specific client requirements in markets across the globe, all while delivering superior risk-adjusted returns. With extensive knowledge of the Middle East and North Africa investment environment, unrivalled access to primary information on regional companies, both large and small, an understanding of the micro and macro economic environment and record of accomplishment across asset classes, ADIC is an ideal investment partner for institutions and high net worth individuals based in the region and beyond.
www.adic.ae
About Orascom Telecom
Orascom Telecom is a leading international telecommunications company operating GSM networks in six high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 440 million with an average mobile telephony penetration of approximately 44% as of June 30th, 2008. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Bangladesh ("Banglalink"), Zimbabwe ("Telecel Zimbabwe"), and has acquired in early 2008 a license to operate mobile services in North Korea. Orascom Telecom had over 77 million subscribers as of June 30th, 2008.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI). For more information visit www.orascomtelecom.com
