MTN pays R26bn in first Investcom settlement

Johannesburg, 18 Jul 2006

Cellular operator MTN has completed the payment of the cash portion (R26 billion) of its takeover of Middle Eastern operator Investcom, the company said yesterday.

MTN, which received acceptance from 99.5% of Investcom shareholders, said over 183 million shares will be listed today in the London and Dubai stock exchanges.

"This represents one of the largest ever payments by a South African company for international assets," MTN said in a statement. "It indicates MTN`s confidence in the future of telecommunications in emerging markets."

The South African company said most of the Investcom management would join the MTN Group.

"The integration of Investcom into the MTN Group has already begun, based on a joint effort of both organisations to capture the available benefits of the acquisition," it added.

MTN CEO Phuthuma Nhleko stated: "The acquisition process has gone smoothly and we are increasingly turning our attention to the swift integration of the businesses.

"When we announced this transaction in May, we described it as a well-considered partnership which would entrench our leadership in telecommunications in Africa and the Middle East," he said.