Kuwait’s MTC buys 61% of Sudan’s Mobitel in billion dollar deal

Feb 6, 2006 (KUWAIT CITY) — Mobile Telecommunications Co. (TELE.KW) said Monday it has agreed to buy 61% of Sudanese wireless operator Mobitel in a deal valued at $1.33 billion.

The Kuwaiti telecommunications company said Mobitel is Sudan’s premiere mobile operator with more than 1.9 million customers.

MTC said funding for the deal has been secured following a $2.3 billion rights issue announced last year. The company already owned 39% of Mobitel.

The acquisition is an opportunity to gain full control of a mobile business in one of Africa’s fastest-growing markets. It is in line with MTC’s strategy of expanding through acquisitions in the Middle East, Africa and beyond.

“Building on our expertise in Africa through our subsidiary Celtel, we expect to add over one million customers during the next 12 months in Sudan,” Saad Al Barrak, deputy chairman and managing director, said in a statement.

The company said the Sudan’s market penetration is just 7%, offering “significant further growth potential.” The country has a population of around 34.4 million, with strong economic growth expected due to rising oil revenues and a peace treaty that ended a civil war, MTC said.

Mobitel customers will benefit from further investments in network capacity and coverage, and MTC said it plans to invest approximately $500 million through 2007.

Middle Eastern and European companies have been exploring investments and acquisitions in Africa as growth in more mature markets slows.

A majority of the one billion additional customers expected to sign up for mobile services in the next five years will come from countries such as India, Indonesia, China and in Africa, analysts predict.

On the net:
– Company Web site: http://www.mctelecom.com

(ST/Dow Jones)