Orascom says wants to buy Hutchison phone unit

SINGAPORE, Oct 16 (Reuters) – Egypt’s Orascom Telecom (ORTE.CA: Quote, Profile, Research) said on Monday it wants to buy Hutchison Whampoa’s (0013.HK: Quote, Profile, Research) emerging markets phone unit, or at least take a controlling stake in the firm.

Orascom bought a 19.3 percent stake in Hutchison Telecommunications International Ltd. (2332.HK: Quote, Profile, Research)(HTX.N: Quote, Profile, Research) for $1.3 billion last December, obtaining exposure to Asian markets.

It now wants to take over the phone unit, or at least own a controlling stake in it.

“We are in constant talks on the price, to come to a price that is fair to both parties,” Naguib Sawiris, chairman of Egypt-based Orascom Telecom (ORTE.CA: Quote, Profile, Research)(ORTEq.L: Quote, Profile, Research), told Reuters on the sidelines of a telecommunications conference in Singapore.

When asked what share he wanted to purchase, Sawiris said: “All of it,” adding “We want to at least get to a controlling stake.”

He declined to provide a timeline or the premium that he would be willing to pay for the shares.

Orascom has mobile phone subsidiaries in the Middle East, Africa and Pakistan.

It operates GSM networks in Algeria, Pakistan, Egypt, Tunisia, Iraq, Bangladesh and Zimbabwe, and is traded on the Egyptian bourse and on the London Stock Exchange. The firm’s subscribers exceeded 30 million by the end of 2005.

Source- http://today.reuters.com

 

Arab mobile provider, Nokia launches Sudan operations

Oct 5, 2006 (DUBAI) — i2, the largest and most diverse mobile provider in Africa and the Middle East announced today in a press briefing the launch of its operations in Sudan.

i2 introduces its retail concept and after sales services for the first time in the country.

i2 is the first authorized Nokia distributor and service center in the country as well as being the first to offer mobile subscribers original Nokia devices with matching accessories and a one-year warranty. In Sudan, i2 will be available through its showroom, distribution network and service center.

i2′s operation in Sudan will be managed by Mohamed Osman El Tayyeb, Chairman, and Hussein Raouf Atwi, General Manager.

i2 plans to expand its operation throughout Sudan within the year to include Bahri, Omdurman and Kalaka. i2 has opened a branch in the state of Adbara and plans to expand to Madani and Port Sudan.

Nokia has long recognized Africa as an important market for the company’s business. Since early 1990, Nokia has provided mobile phones, enhancement, telecoms networks and related infrastructure and services to operators and customers throughout Africa.

‘Nokia’s approach is to develop and support all local distributors and service partners in all countries. Nokia has been working closely with our regional distributor, i2 across most countries in the Middle East and Africa for many years now.

i2 will be able to offer Nokia’s customers authentic Nokia handsets and official Nokia Customer Care Services to ensure that customers in Sudan receive the best possible Nokia experience.” Said Jarmo Santala, General Manager for Nokia Customer and Market Operations North West Africa.

The cost effectiveness of GSM-based services in comparison to fixed-lines has encouraged the fast growth of mobile services in Africa. Nevertheless, mobile penetration levels in Africa remain low.

‘i2 has a big role to play in the development of the mobile market in Africa. We want to make sure that it’s growing market follows international standards of product quality and service’ stated Abdul Hameed Al Sunaid, President and CEO, i2.

Founded in 1993 in Saudi Arabia as Itsalat International, i2 is the region’s largest and most diverse mobile phone provider in the region. i2 operates in: Bahrain, Chad, Egypt, Ghana, Iran, Iraq, Ivory Coast, KSA, Kuwait, Lebanon, Mauritius, Morocco, Reunion, Senegal, Sudan, Syria, Tunisia, UAE and UK.

Source- http://www.sudantribune.com

Vodafone Egypt to buy 51% of ISP Raya Telecom

Vodafone Egypt has signed a contract to acquire 51 percent of Egyptian ISP Raya Telecom from Raya Holding for EGP 104 million. Raya Telecom operates its own national infrastructure and provides data services to residential and business customers. Raya Holding has the right to sell its remaining Raya Telecom stake to Vodafone Egypt within two years at the same price. The partners have agreed to an immediate injection of EGP 50 million in Raya Telecom’s capital to strengthen its services and to explore further opportunities and synergies between the two companies. Raya Telecom will keep operating under its brand name. Amr Abdallah, the current MD of Raya Telecom, has resigned but has agreed to join Vodafone as a consultant.

Source- http://www.telecompaper.com

Telecom Egypt hurts Case index

CAIRO: Egypt’s main index fell for a second day, posting the biggest fluctuation among Arab equity markets. Telecom Egypt, the largest fixed-line operator in the Middle East by market value, paced the decline.

The Case Index dropped 0.8%, taking its two day decline to 2.9%. The measure rose 7.3% in September, boosted by Telecom Egypt’s move on September 19 to increase its stake by 23.5% in Vodafone Egypt Telecommunications.

The Abu Dhabi Securities Market Index fell 0.7% to 3514.16 as 22 stocks fell, 14 rose and 17 were unchanged. The measure has lost a third of its value this year on concern that prices have outpaced the prospects for corporate earnings growth. The Dow Jones DIFC Arabia Titans Index, a measure of 50 stocks in 10 Arab countries excluding Saudi Arabia, declined 0.4% to 350.96 as 19 stocks fell, 12 rose and 19 were unchanged.

The National Bank of Abu Dhabi dropped 2.3% to 25.2 dirhams. Emirates Telecommunications Corp, the largest telephone operator in the United Arab Emirates, decreased 0.8% to 19.05 dirhams.

Saudi Arabia’s Tadawul All Share Index added 0.6% to 10832.8 as 69 stocks rose, 10 fell and 2 were unchanged at the end of the morning session. Bloomberg

Source- http://www.gulf-times.com

Telecom Egypt agrees to up Vodafone Egypt stake to 49%

Telecom Egypt (TE) says a recent tender offer has seen it secure commitments to acquire a further 23.47% stake in mobile operator Vodafone Egypt from minority shareholders for EGP5.63 billion (USD1.03 billion). TE opened the tender offering to buy an additional 24.4% of Vodafone Egypt equity on 21 September. Upon completion of the deals, TE’s holding in the cellco will rise from 25.5% to 48.97%. UK-based Vodafone Group holds 50.1%. The outstanding shares are currently split between Alkan Group (5%), Banque du Caire (3.4%) and a number of individual shareholders.

Source- http://www.telegeography.com

Pakistan Mobilink to issue $300 mln dlr-bond – source

KARACHI, Sept 28 (Reuters) – Pakistan Mobile Communications (Pvt) Ltd. (Mobilink) will next month launch a $300 million dollar-denominated bond, a banker with knowledge of the deal said on Thursday.

“The size of the issue would be approximately $300 million,” said the source, requesting anonymity. “It would be a Reg. S bond, launched in October,” he said, which typically means the securities would not be sold in the United States.

The source gave no details on the maturity of the issue, which would be the first dollar bond sale by Pakistan’s biggest cellphone operator.

Mobilink, the local unit of Egypt-based telecoms company Orascom , declined to comment on the debt sale, but market sources say it has mandated ABN AMRO and Deutsche Bank to handle the issue.

Source- http://asia.news.yahoo.com

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UAE: Etisalat plans India move

Etisalat is looking to enter the Indian telecommunications market as a prelude to doing business in other Asian countries such as Sri Lanka, Myanmar, the Maldives and the Philippines, a senior executive said yesterday.

The Abu Dhabi-based com pany is “studying several offers” from Middle East and Asian companies to acquire more mobile licences, Chairman Mohammed Hassan Omran said yesterday.

Although it is currently focusing on speeding up the operation of the third mobile licence in Egypt, which it obtained recently, Etisalat is “making efforts” to enter other markets, Omran told Al Emarat Al Youm.

Etisalat also recently bought a controlling stake in Pakistan Telecommunications Corporation, but lost the bidding for a 30 per cent stake in Tunisie Telecom in Tunisia.

“We are focused on the Egyptian market because it is an important market in the region, and one that is witnessing considerable growth. We will begin services on schedule in February 2007,” Omran said.

Observers say the Egypt licence witnessed strong competition between rivals, but Etisalat beat rivals from Kuwait, Saudi Arabia and South Africa as well as Egypt, paying some $2.9 billion (Dh10.6bn) for the licence.

The company was earlier this month ranked sixth among 50 listed Arab companies by Forbes magazine. It took top spot in the UAE and fifth in the GCC, in the Shuaa Capital-Gulf Business report on the biggest GCC companies by market value in 2006.

Etisalat has been going global with a vengeance since it acquired the Mobily licence in Saudi Arabia for $2bn (Dh7.34bn).

In the race to acquire Telsim of Turkey, however, Etisalat’s bid of $2.51 billion (Dh9.2bn) was the lowest. Vodafone of the UK won the deal for $4.55bn (Dh17bn).

Source- http://www.zawya.com

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Buyout firms seek sale of Greek mobile operator for €4bn

TEXAS PACIFIC Group and Apax Partners are seeking to sell TIM Hellas, the Greek mobile operator, for up to €4 billion (£2.7 billion) – just one year after paying €1.1 billion for the company, The Times has learnt.

Morgan Stanley and Lehman Brothers have been instructed to handle a sale of the group, Greece’s third-biggest mobile operator, and an auction is now under way.

The deal will provide the first indication of the kind of returns that private equity firms can reap from their recent spate of acquisitions of telecoms assets.

Both private equity and trade buyers are believed to be interested in TIM Hellas, which has more than 2.3 million customers.

This year Naguib Sawiris, the Egyptian billionaire, said that he would be interested in bidding for the operator and amalgamating it with Orascom Telecom, the group of which he is chairman. However, sources close to the deal said that many potential buyers were likely to balk at the mooted €3.5 billion to €4 billion price tag.

One described the sale as an “opportunistic flip attempt”.

Texas and Apax paid €1.1 billion in April last year for 80.9 per cent of TIM Hellas. The price was equivalent to €16.43 per share. They acquired the remaining shares for €263.5 million in November last year.

Improvements in the group, which saw its earnings in the three months to March 31 hit €65.5 million, up from €48 million a year earlier, have included investment in its infrastructure.

However, industry observers reckon that it still lags behind its rivals Cosmote and Vodafone.

The appetite for telecoms and cable players is high at present, particularly among private equity players. Buyout groups are awash with cash and the steady revenue streams and infrastructure of such operators is attractive.

Source- http://business.timesonline.co.uk

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Telecom Egypt bids for larger stake in Vodafone Egypt

Telecom Egypt has launched a bid to acquire an additional 24.4 percent in mobile operator Vodafone Egypt. The fixed-line incumbent already holds 25.5 percent in Vodafone Egypt, while Vodafone has 50.1 percent of the shares. Telecom Egypt is offering EGP 100 per Vodafone Egypt share, equal to EGP 5.856 billion if the full bid is successful. Some 16 percent of Vodafone Egypt is free float for the stock listing, while Banque de Caire holds 3.4 percent and Alkan group has 5 percent.

Source- http://www.telecompaper.com

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Telecom Egypt to lift Vodafone Egypt stake

TEL AVIV (MarketWatch) — Telecom Egypt on Tuesday said it would seek to lift its stake in Vodafone Egypt, one of the country’s two mobile operators, by launching a tender offer valued at 5.86 billion Egyptian pounds, or $1.02 billion.
Telecom Egypt (UK:TEEG: news, chart, profile) said it would offer 100 Egyptian pounds a share for 24.4% of Vodafone Egypt, which is majority owned by Vodafone Group PLC of the U.K. (VOD :

vodafone group plc new spons adr new
News , chart, profile, more
VOD21.85, 0.00, 0.0%) (UK:VOD: news, chart, profile) .
Vodafone Egypt shares closed at 89 pounds in Cairo on Monday. The move, if successful, would take Telecom Egypt’s stake to 49.9% from 25.5%.
The deal is subject to clearance by the Egyptian Capital Markets Authority, Telecom Egypt said.
Telecom Egypt, 80% owned by the country’s government, has informed Vodafone Group of its plan to begin the offer.
A spokesman for Vodafone Group said Tuesday the company is “very happy with our stake” of 50.1% and won’t participate in the tender offer.
A spokesman for Telecom Egypt wasn’t immediately available for comment.
EFG-Hermes Investment Banking provided financial advice to Telecom Egypt on the deal.
In 1998, Vodafone Group, in a joint venture with Egyptian and international investors, won the country’s second 15-year GSM license with a bid of 1.75 billion Egyptian pounds.
Vodafone Egypt then invested more than 4.5 billion Egyptian pounds to build its network, the company’s Web site says. The company now has 4 million customers and annual revenue exceeding 4 billion Egyptian pounds. Vodafone Egypt has introduced mobile-telecom services including, among others, pre-paid lines, short-message service, known as SMS, wireless fax and E-mail, and GPRS, a wireless data-transmission service.
Telecom Egypt was founded in 1998 as the successor to Egypt’s National Telecommunications Organization.

Source- http://www.marketwatch.com

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