Orascom Sells Ivory Coast Subsidiary

Egypt's Orascom Telecom Holding (OTH) has sold its controlling 51.7% equity stake in Ivory Coast's GSM services business, Telecel Loteny, for US$45 million in cash. As a result, OTH consolidated net debt would decrease by over US$140 million pro forma for the completed sale. The divestiture advances OTH's announced program to strengthen its financial profile and streamline its geographic presence.

OTH acquired its stake in Telecel Loteny through its ownership in Telecel International in April 2000, and grew Telecel Loteny's subscriber base from 155,000 subscribers to 599,000, ending on December 2003, a 386% increase in 4 years. This achievement was made despite the political turmoil in Ivory Coast that took place over the last 2 years, and managed to maintain an equal market share with its main competitor Orange.

OTH's 100% owned subsidiary Telecel agreed to sell its entire stake in Telecel Loteny. In addition, the purchaser has committed to a renewable three year licensing agreement for the use and maintenance of Telecel licenses and trademarks. The transaction is expected to be completed upon receipt of third party consents within ninety days. After completion of the sale, OTH will continue to hold four sub-Sahara GSM mobile services operations in the Democratic Republic of Congo, Congo Brazzaville, Zimbabwe and Tchad.

Mr. Naguib Sawiris, Chairman & CEO of OTH affirmed, "OTH will continue to pursue its announced strategy of (1) focusing on growth and profitability in its core operations in Algeria, Egypt, Iraq, Pakistan, and Tunisia, (2) maximizing returns through capital outlay, and (3) further improving its cash flow and balance sheet. The recently announced developments in Iraq, Algeria and Ivory Coast underscore OTH's commitment and strength in executing its goals."

Posted to the site on 10th February 2004