Korek Telecom in final talks over stake sale
Kurdish mobile operator Korek Telecom is reportedly in discussions with two companies to sell a minority stake and is expecting to strike a deal by the end of the week.
As per the previous reports, France Telecom had entered into talks to buy a stake in the operator, as part of a strategy to expand its presence in the Middle East.
According to Korek’s Chief Executive Humam Amara, a deal between the two companies has not yet been brokered, it is still in discussion. The company has not signed anything with Orange. He also stated that Korek was in talks with ‘another foreign, publicly listed company’, but could not reveal the name of the firm, due to the signing of a non-disclosure agreement.
According to Amara, discussions with the two operators are in the final stages, adding that Korek will look to make a decision within the next few days. Korek initially focused on the provision of mobile services in Kurdistan, but in August 2007 it was awarded a national license and has developed into Iraq’s third-largest cellco by customers, with an estimated 2.55 million subscribers at 30 September 2010. Korek is looking to sell a 35%-49% stake in the operator, which is valued at about US$3 billion.
Orascom wants a large piece of the Hutch pie
It could be Essar’s worst nightmare come true. Egyptian telco, Orascom wants a larger piece of the Hutch pie. Hutch is Essar’s partner in India, reports CNBC-TV18.
Orascom wants to buy Hutchison Whampoa’s emerging markets phone unit, Hutchison Telecommunications International, or at least get controlling stake in it. That’s what Naguib Sawiris, Chairman of Orascom told a newswire agency in Singapore.
“We are in constant talks on the price, to come to a price that is fair to both parties,” said Naguib Sawiris. However, a Hutch spokesperson in India declined the report and said, “The company is not up for sale.”
Orascom has almost 20% in HTIL, which it bought for USD 1.3 billion last December. HTIL owns 67% in Hutchison Essar and the stake sale had angered Essar considerably.
The Indian business group had raised security issues with the government and that’s when the Hutch-Essar relationship began to deteriorate. Currently, the two companies are also in arbitration over control for BPL’s Mumbai circle.
Source- http://www.moneycontrol.com
