MTC buys 61% of Mobitel in Sudan

Details: Alec Barton; Category: Trends & Forecasts; 13 February 2006; 13123 views

In a deal valued at US$1.332 billion, MTC has acquired from Sudatel 61% of Sudanese mobile operator Mobitel. Mobitel currently has almost 2 million customers, up 70% in the last year. Funding for this new transaction was secured following the capital increase from an equity rights issue of US$2.3 billion.

MTC believes the main advantages of acquiring Mobitel is the opportunity to manage a mobile business in one of Africa 's fastest growing markets. It is also consistent with MTC's strategy to expand its footprint through selective acquisitions in the Middle East , Africa and beyond. As with its recent bid for an Egyptian GSM licence, it is looking to bridge the gap between its Middle East operations and the African operations it acquired when taking over Celtel. Cross-border opportunities with neighbouring Celtel operations in Chad , Kenya , DRC and Uganda are immediate candidates.

Dr Saad Al Barrak, Deputy Chairman and Managing Director, MTC, stated: "MTC is committed to accelerating the growth of Mobitel and maintaining its dominant position in the dynamic Sudanese mobile market - we are also keen on expanding our operations throughout Sudan including the Southern region of Sudan . Building on our expertise in Africa through our subsidiary Celtel we expect to add over 1 million customers during the next 12 months in Sudan ."