Vivendi in talks to buy Saudi Oger Telecom stake (France)French media and telecommunications group Vivendi has issued a statement to confirm press reports that talks were underway with Saudi Oger that could lead to an equity investment in Oger Telecom. Although Vivendi says it can make no further comment at this time, banking sources told Les Echos that Vivendi seeks to buy a 30-35 percent stake in the company. A source close to the group said it does not want to stay a minority partner for long, as was the case in Morocco, where the group increased its Maroc Telecom stake from 35 percent to 51 percent. Besides its home market and Morocco, Oger Telecom is present in countries such as Turkey, South Africa, Lebanon and Jordan. It has 35 million customers and turned over USD 6.9 billion last year, for a USD 2.9 billion gross operating profit.
In 2005, Oger bought 55 percent of Turk Telekom, which had 3.6 million ADSL lines at the end of June. It also owns the country’s third mobile operator, Avea, as well as South Africa’s third mobile operator. Oger tried to float Oger Telecom in 2006, but pulled out due to an unsatisfactory valuation. When Oger acquired its Turk Telkom stake, it committed to retaining a majority stake only until November 2008, at which time the door will open for Vivendi. The French group has a low level of debt, according to financial analysts.
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