Cairo (APD) - Orascom Telecom Holding (OTH) is interested in buying a controlling stake in Spanish telecom operator Xfera, the Spanish newspaper, Expansion, reported Wednesday.
Xfera, which holds a license to operate Universal Mobile Telecommunications System (UMTS) mobile telephony in Spain, plans to start operations in the first half of 2006.
OTH will have to compete against Hong Kong's Hutchison Whampoa Ltd., which is already negotiating with Xfera stakeholders the purchase of a controlling stake in the operator.
Xfera's shareholders consist of Spanish construction group, ACS, Scandinavian telecommunications group, TeliaSonera, and other Spanish companies.
The consortium is seeking to incorporate a partner before the planned launch of its Third Generation mobile phone service in Spain. Xfera shareholders have already been in discussions with Hong Kong-based Hutchison Whampoa over selling a controlling stake in Xfera to the Chinese multi-sector conglomerate.
OTH said early this week it signed an agreement to sell its 65% stake in the Congolese GSM operator, Libertis Telecom, for $66.6 million in cash.
Net profits of OTH rose to LE 2.87 billion ($491 million) for the first nine months of 2005, an increase by 75% compared to the same period of last year.
Shares in OTH dropped on Wednesday almost 1% to last trade at LE 575 per share. [TS]
By Eman Wahby, APD Staff Writer in Cairo
© APD (Arab Press Digest) 2005
