Jordanian Network Sold to Kuwaiti Company

Kuwait's MTC has brought out Orascom's 91.6% shareholding in Jordan's GSM network, Fastlink for US$423.9 million. The acquisition, which is subject to the regulatory approval of the Telecommunications Regulatory Commission of Jordan ("TRC"), is expected to be completed by the second week of January 2003. MTC already owned 4.9% of Fastlink, so the transaction gives it 96.5% of the company.

Orascom says that it will use the proceeds from the sale to reduce debt and help finance other current operations.

Mr. Naguib Sawiris, Chairman of OTH, commenting on this acquisition: "Fastlink has been a tremendous investment for OTH, operating in a business friendly environment. This transaction now allows Orascom Telecom Holding to fully realize the value of one of its mature assets. The proceeds of the transaction will allow OTH to strengthen its balance sheet and substantially reduce its debt obligations. The company will remain focused on its high growth assets in Algeria, Egypt, Pakistan and Tunisia , and should reach a total of 4.5 million controlled subscribers by the end of 2002."

Also in Jordan, Ericsson has signed a US$39 million contract to upgrade the rival, MobileCom network. Under this agreement Ericsson will be upgrading the core network, the radio base stations as well as the microwave transmission."

Posted to the site on 27th December 2002