Orascom Telecom Holding announces that it has concluded the sale of its internet services arm LINKdotNET and Link Egypt to the Egyptian Company for Mobile Services.
InTouch Communications S.A.E, a wholly-owned subsidiary of OTH has signed today a share sale and purchase agreement with Mobinil for the sale of LINK. The sale excludes the non-ISP part of Link Egypt’s business and affects
LINKdotNET’s Egyptian operations only. The other non-connectivity business, LINK Development, LINKonLINE, Connect Ads, Arab Finance Brokerage Company and Arpu+ will remain owned by OTH.
The deal is a cash transaction based on an enterprise value of USD 130 Million. The business represents 56% and 90% of the revenue and EBITDA of OTH Internet Services respectively.
The sale will allow Mobinil to extend broadband and corporate communications services to its more than 26 million customers; and create value for its shareholders and its 3,500 employees. Mobinil and LINK’s customers will benefit
from the expected synergies between both entities, including combined offerings, expansion of distribution channels and integrated solutions (single portal, single support, single bill, complementing solutions). Whereas, Mobinil’s shareholders will capitalize on the expected synergies between the two entities, such as lower churn rate on both sides, a more convenient customer experience, more competitive solutions against competition, infrastructure savings and cost savings.
Khaled Bichara, Group Chief Executive Officer of OTH, said: “We are delighted to have concluded this deal. As per the trend in the global telecom industry, the convergence between ISP’s and operators clearly enhances the value for both businesses and enriches the value offering to their consumers.”
Orascom Telecom is a leading international telecommunications company operating GSM networks in high growth markets in the Middle East, Africa and Asia, having a total population under license of approximately 510 million with an average mobile telephony penetration of approximately 51% as of March 31st, 2010. Orascom Telecom operates GSM networks in Algeria ("OTA"), Pakistan ("Mobilink"), Egypt ("Mobinil"), Tunisia ("Tunisiana"), Bangladesh ("banglalink"), North Korea (“koryolink”) and Canada (“Wind Mobile”) through its indirect equity shareholding in Globalive Wireless. In addition it has an indirect equity ownership in Telecel Zimbabwe (Zimbabwe) and through its subsidiary Telecel Globe, OTH also operates in Burundi, the Central African Republic and Namibia. Orascom Telecom had just under 96 million subscribers as of March 31st, 2010. Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange under the symbol (ORTE.CA, ORAT EY), and on the London Stock Exchange its GDR is
traded under the symbol (ORTEq.L, OTLD LI).