13 January 2009
Orascom Telecom Holding S.A.E. ("Orascom Telecom" or "OTH") announces the sale of 100% of M-link to TLC SERVIZI S.p.A., a wholly owned subsidiary of Wind Telecomunicazioni S.p.A., for a total consideration of approximately $77 million in cash.
The transaction is expected to complete this week with the payment in cash to Orascom Telecom.
Deloitte Financial Advisory S.p.A. has provided a fairness opinion on the valuation to satisfy arm's length legal requirement and in line with best practices. This transaction complies with OTH's debt covenants. In the nine months ended September 30, 2008, M-link generated revenues of $152 million and an EBITDA of $18 million.
M-link has historically provided Orascom Telecom GSM subsidiaries with a traffic link from and to the rest of the world, by maximizing revenues arising from collection of international traffic to be terminated on Orascom Telecom GSM subsidiaries and terminating their international outgoing traffic at best cost/quality ratio.
By integrating M-link with the international wholesale activities currently performed by Wind Telecomunicazioni, the Orascom Telecom subsidiaries will benefit from substantial economies of scale and stronger negotiating power.
"The sale of M-link to Weather Investments' Italian subsidiary Wind Telecomunicazioni S.p.a. is in line with our stated strategy to dispose of our non-core assets and focus on our GSM businesses. The sale of M-link will also enable us to achieve the important goal of creating further synergies and economies of scale within the Weather group that will directly benefit the OTH subsidiaries in their international traffic businesses. This transaction will provide significant value creation for our shareholders, both up front and through the benefits arising to OTH and its subsidiaries from a centralised international wholesale center of excellence" said Naguib Sawiris, Orascom Telecom Chairman and CEO.
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About Orascom Telecom
Orascom Telecom is a leading international telecommunications company operating GSM networks in high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 453 million with an average mobile telephony penetration of approximately 46% as of September 30th, 2008. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Bangladesh ("banglalink"), Zimbabwe ("Telecel Zimbabwe"), and North Korea ("Koryolink"). Through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic and Namibia. Orascom Telecom had over 79 million subscribers as of September 30th, 2008.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI). For more information visit www.orascomtelecom.com.
Orascom Telecom Holding S.A.E. ("Orascom Telecom" or "OTH") announces the sale of 100% of M-link to TLC SERVIZI S.p.A., a wholly owned subsidiary of Wind Telecomunicazioni S.p.A., for a total consideration of approximately $77 million in cash.
The transaction is expected to complete this week with the payment in cash to Orascom Telecom.
Deloitte Financial Advisory S.p.A. has provided a fairness opinion on the valuation to satisfy arm's length legal requirement and in line with best practices. This transaction complies with OTH's debt covenants. In the nine months ended September 30, 2008, M-link generated revenues of $152 million and an EBITDA of $18 million.
M-link has historically provided Orascom Telecom GSM subsidiaries with a traffic link from and to the rest of the world, by maximizing revenues arising from collection of international traffic to be terminated on Orascom Telecom GSM subsidiaries and terminating their international outgoing traffic at best cost/quality ratio.
By integrating M-link with the international wholesale activities currently performed by Wind Telecomunicazioni, the Orascom Telecom subsidiaries will benefit from substantial economies of scale and stronger negotiating power.
"The sale of M-link to Weather Investments' Italian subsidiary Wind Telecomunicazioni S.p.a. is in line with our stated strategy to dispose of our non-core assets and focus on our GSM businesses. The sale of M-link will also enable us to achieve the important goal of creating further synergies and economies of scale within the Weather group that will directly benefit the OTH subsidiaries in their international traffic businesses. This transaction will provide significant value creation for our shareholders, both up front and through the benefits arising to OTH and its subsidiaries from a centralised international wholesale center of excellence" said Naguib Sawiris, Orascom Telecom Chairman and CEO.
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About Orascom Telecom
Orascom Telecom is a leading international telecommunications company operating GSM networks in high growth markets in the Middle East, Africa and South Asia, having a total population under license of approximately 453 million with an average mobile telephony penetration of approximately 46% as of September 30th, 2008. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Bangladesh ("banglalink"), Zimbabwe ("Telecel Zimbabwe"), and North Korea ("Koryolink"). Through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic and Namibia. Orascom Telecom had over 79 million subscribers as of September 30th, 2008.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is traded under the symbol (ORTEq.L, OTLD LI). For more information visit www.orascomtelecom.com.
© Press Release 2009
