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Amsterdam (pte039/29.03.2005/15:00) - Pan-African telecoms operator Celtel http://www.celtel.com has announced that it has agreed to a 3.4 billion dollar cash offer from the Kuwaiti telecoms operator Mobile Telecommunications Company (MTC). As the Amsterdam-based company reports in a press release on its website, under the terms of the offer, MTC will acquire immediately 85 per cent of the issued capital of Celtel on closing and the remaining 15 per cent within two years. MTC, which is listed on the Kuwait Stock Exchange with a market capitalization of 7 billion dollars, has operations in Kuwait, Jordan, Lebanon, Iraq and Bahrain, with 3.4 million managed customers in the region. The company recently announced increased profits for 2004, up 17.6 per cent on 2003 at 408 million dollars. http://www.celtel.com/en/news/press-release26/index.html
MTC's stated strategy includes expansion into emerging market territories including those in sub-Saharan Africa. Celtel will remain as a separate entity within the MTC group and retain its existing head office and management structures both in Amsterdam and in each of the thirteen African countries of operation. Additionally, Celtel will also continue to operate under its market-leading brand name. "In the past, Celtel deployed European and American funds to assist the development of telecommunications infrastructure in Africa. Today we are engaging the Middle East in this process. This transaction represents a key step in bringing these sources of wealth to support the development of Africa," said Mo Ibrahim, the founder of Celtel. "This offer will allow our shareholders and option holders to share in the financial rewards. Beyond that, I am also proud that the current Celtel shareholders have set aside 18 million dollars of their own money to reward all eligible Celtel shareholders in Africa, who have worked so hard to build the business to date," Ibrahim added.
"We are delighted with the acquisition of Celtel, an established telecommunications organisation with an internationally renowned pedigree in sub-Saharan Africa. Our acquisition of Celtel will give MTC the largest regional footprint in the Middle East and Africa. Together, MTC and Celtel will leverage the strong synergies, shared cultural values and heritage that exist between the Arab world and sub-Saharan Africa. We look forward to working with Celtel's current management team," said Saad Al Barrak, MTC's vice chairman and managing director.
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