Egypt-based Orascom Telecom Holding's fully-owned subsidiary, Telecel Globe, has wrapped up a deal to sell its Namibian subsidiary, Powercom, to Investec and Nedbank.
Orascom Telecom operates GSM networks in high-growth markets in the Middle East, Africa and Asia. The countries in which it operates have a combined population of about 517 million, with an average mobile telephony penetration of around 51%.
In a statement, it said the price of the sale includes Powercom's liabilities of about $60 million. It didn't disclose the full value of the deal, which is subject to regulatory approval. Powercom is Namibia's second national operator.
CEO Ahmed Abou Doma says: “We consider this transaction to be positive for Powercom as it strengthens the company through solid local partners. This is also in line with our overall company strategy to focus on profitable growth.”
Orascom operates in Algeria (OTA), Pakistan (Mobilink), Egypt (Mobinil), Bangladesh (banglalink) and North Korea (koryolink). It has an indirect equity shareholding in Globalive Wireless Canada (Wind Mobile).
It also has an indirect equity ownership in Telecel Zimbabwe. Through its subsidiary, Telecel Globe, it operates in Burundi, the Central African Republic and Namibia. Orascom Telecom had more than 104 million subscribers at the end of March.
Last year, a R24 billion merger opportunity between Orascom and Africa's largest cellular network operator failed.
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