MTN, Orascom deny to comment on takeover bid (Namibia)

www.WirelessFederation.com/news: Both Orascom and MTN are tight lipped about the possible takeover bid of Orascom, the parent company of Leo – Namibia’s second largest telecommunications operator by MTN. The silence is amidst visible signs and media speculation surrounding the takeover bid.

Stanley Similo, spokesperson of Leo denied commenting on the future of the company saying that he was not in a position to comment on the on-going talks between MTN and Orascom’s parent company, Weather Investments S.P.A, which may or may not lead to a transaction.

In a statement by the company, it has been cleared that Orascom is aware that its parent company, Weather Investments S.P.A, is in discussions with MTN Group which may or may not lead to a transaction relating to the acquisition of control of Orascom and/or its businesses by MTN.

Analysts believe MTN is likely to buy Orascom’s Algerian operation, Djezzy and four of its sub-Saharan businesses. Officials at MTN have suggested the shareholders to exercise caution in trading their MTN securities until a further announcement is made concerning a possible deal. MTN which already has a presence in Namibia through its Internet services business is providing both corporate firms and small businesses with Internet solutions after acquiring Verizon SA, which in turn wholly owned Verizon Namibia last year.

According to Johnny  Aucamp, general manager of strategic relations and business development,  Africa at MTN Business,  Namibia is a viable market as there is a considerable demand by organizations for superior service offerings and a competent telecommunications partner.