Celtel Buys Nigerian Operator

Celtel, a subsidiary of MTC Group has announced that it has reached agreement to acquire a controlling stake of 65% in Vmobile, one of Nigeria's leading mobile telecom operators, for US$1.005 billion. This agreement marks the company's largest ever acquisition and will expand Celtel's presence to 15 markets on the African continent.

Vmobile offers extensive mobile coverage to more than 5 million customers throughout Nigeria. The transaction includes the purchase of existing shares and a substantial equity injection which will immediately boost Vmobile's financial ability to realize its growth potential.

Commenting on the transaction, Marten Pieters, CEO of Celtel International, said: "This agreement marks Celtel's most important expansion in Africa to date. Nigeria is one of Africa's biggest and fastest growing markets and we are delighted that we can bring our extensive expertise and resources to offer Nigerians the best possible quality of services."

Tsega Gebreyes, Celtel's Chief Strategy & Development Officer commented: "We are delighted that the complex negotiations with Vmobile's shareholders have resulted in a successful transaction creating significant value for the shareholders and much needed investment in the company. Celtel looks forward to a strong partnership with Vmobile shareholders to build an even stronger business."

Mr Paul Usoro, Chairman of Vmobile's investment committee, said: "We are delighted to have found a partner that shares both our vision and our passion for developing the mobile telephony market in Nigeria. This transaction will help us to rapidly expand our network to the benefit of our customers."

Celtel and MTC now provide mobile telecommunications services to more than 15 million customers in 15 countries in Africa and over 20 million inclusive of 5 operations in the Middle East."

Posted to the site on 1st June 2006