Mobile Telecommunications Group KSC (MTC) has paid US$467 million for the remaining 15% equity in Celtel. Her path to becoming a global operator is becoming clear…
Mobile Telecommunications Group KSC (MTC) now holds 100% of the share equity of Celtel International BV (Celtel) following the final payment of US$467 million for the remaining 15% of the company. This last payment finalises the binding agreement entered into with Celtel’s shareholders in April 2005 and has been completed on time. The entire deal is worth US$3.4 billion.
Described in 2005 as “a record transaction between the Middle East and Africa,” the acquisition of Celtel, the leading cellular operator in sub-Saharan Africa, triggered the appetite of other regional and international cellular operators for sub-Saharan markets where mobile telecom penetration is still relatively very low, ie, below 15%.
MTC’s acquisition of Celtel has helped it achieve a major part of its vision: becoming a global cellular operator by opening up many of the most promising markets, especially in sub-Saharan telecoms.
“MTC has built on Celtel’s expertise in sub-Saharan markets to continue its expansion plan in emerging African markets by acquiring what is now Celtel Madagascar in December 2005 and increasing ownership to 100% of Sudan’s Mobitel, in addition to purchasing 65% of Nigeria’s third operator (now Celtel Nigeria) in May 2006. We now have a footprint of 450 million potential customers in Africa,” said Dr Saad Al Barrak, CEO of MTC Group.
