MTN undecided on Celtel action

Johannesburg, 10 May 2005

Mobile operator MTN insists it has not decided on any final course of action regarding the company`s dealings with Celtel and Mohamed Ibrahim, Celtel`s chairman and a major shareholder, although it has reserved its rights to claim damages against both.

This follows speculation that suggested the company might seek legal redress to prevent the purchase of African cellular operator Celtel by Kuwaiti firm MTC, which recently bought Celtel for $3.4 billion (R19.6 billion).

In April, MTN announced it had made an application in the English High Court for an order for disclosure of documents and information, including the irrevocable undertakings signed by Celtel shareholders in respect of an offer by MTN and the terms on which such undertakings were held.

According to reports, this was because MTN believed that legally binding undertakings were given in favour of its $2.67 million bid for Celtel last month - before the sale to the Kuwaitis was announced.

Celtel, which holds GSM licences in 13 African countries, was planning a dual London and Johannesburg listing later this year, prior to the MTC offer.

The High Court has since ordered Celtel and its chairman to disclose to MTN the requested documents and information, and the local operator is presently reviewing these in order to determine what further action, if any, to take.

In a statement yesterday, MTN announced there can be no assurance as to the outcomes of any actions the company may decide to take, therefore shareholders are advised to exercise caution when dealing in MTN securities until a further announcement is made.

MTN has posted its statement on SENS in terms of JSE requirements and insists it will offer no further comment at this time.