Amsterdam — Celtel is investing US$250 million to acquire the majority stake in KenCell, formerly owned by Vivendi Telecom International, in one of Kenya's largest-ever corporate transactions.
* Celtel International, the leading pan-African mobile communications group, is investing US$250 million in Kenya to acquire the majority stake in KenCell Communications Ltd, the shareholder debt and to develop the business.
* KenCell, with its Yes! brand is one of the two major mobile network operators in Kenya. Founding local partner, Sameer Group, continues to hold 40% of the equity in KenCell.
* The acquisition adds a further 1.2 million subscribers to Celtel's pan African network bringing the number of users to four million in 13 African countries.
* Celtel is East Africa's only regional operator covering the three key countries: Kenya, Uganda and Tanzania.
* Celtel is funding the acquisition with a combination of new equity from existing and new shareholders, funds raised from asset disposals and debt.
Marten Pieters, Celtel International's Chief Executive Officer, commented:
"This is a very important acquisition for Celtel. This re-affirms our position as the fastest growing mobile operator in the fastest growing market in the world. It also gives us both scale and scope in the East African region.
"As the operator with the largest footprint in Africa, we bring a broad understanding of the trends and challenges of mobile telephony; the perfect complement to KenCell's successful experience in Kenya. We are committed to developing African networks, with over US$300 million planned for capital investment in existing operations this year.
"Kenya is one of the more established mobile markets in Africa. It still has a significant potential for organic growth in the next few years to increase penetration levels to 10% from 7% today. We look forward to integrating the 1.2 million KenCell customers into Celtel."
Mohamed Ibrahim, Celtel International's Chairman, said:
"We are delighted to be making this substantial investment in one of Africa's most promising economies with a significant opportunity for telecommunications development. The support we have had from our shareholders and lenders is a testament to Celtel's reputation for developing quality networks and delivering strong subscriber growth in the African markets.
"We welcome Sameer, Kenya's leading business group, as a partner of Celtel in KenCell. We welcome KenCell's excellent management and staff into the Celtel family. We look forward to working with them to deliver quality international and regional connections and customer service that are the hallmarks of Celtel."
Philippe Vandebrouck, Managing Director of KenCell said:
"We are delighted to be joining the number one pan-African mobile network. The strong alliance of Celtel with the Sameer Group of Companies in Kenya is a fantastic opportunity for KenCell. Being part of Celtel will bring regional synergies to KenCell as well as career opportunities for our experienced staff."
Naushad Merali, Chairman of Sameer Group said:
"Today I am proud to announce that the biggest commercial agreement ever signed in Kenya has confirmed that our new business partner will be Celtel.
"Dr. Mohamed Ibrahim, the Chairman of Celtel, is an African business leader with a clear vision for the future of this Continent and for the role that telecommunications must play. Celtel's commitment to Kenya in terms of investment demonstrates the confidence they have in the growth and future of Africa."
