Celtel and MTC are very pleased to announce they have won the Africa Investor Awards' Infrastructure Deal of the Year award for the acquisition of pan-African mobile telecoms operator Celtel International by MTC Kuwait in May, 2005.
The acquisition by MTC Kuwait represents one of the largest corporate deals ever involving a company operating in sub-Sahara Africa. The deal brings Middle-Eastern wealth from Gulf oil revenues to Africa and puts over $ 2 billion back to Africa focused development groups and private equity funds who are major Celtel shareholders. MTC have expressed a strong commitment to expand Celtel's footprint in Africa through organic growth and selective acquisitions.
Celtel International is a pan-African telecommunications company that offers mobile telecommunications services to more than 8 million customers in 13 countries across the African continent. Celtel was formed and built by African people and has invested over $ 1200 million in bringing telecommunications to more than 8 million Africans.
With a world-class and supportive investor base and a strong focus on implementing high corporate governance standards, Celtel's Board of Directors had decided to prepare for an initial public offering (IPO) at the London Stock Exchange. In the run-up to the IPO, several parties expressed an interest in acquiring the company. After careful consideration, Celtel's Board recommended in April 2005 that the company's shareholders accept an offer from Mobile Telecommunications Company (MTC) of Kuwait to acquire Celtel for $ 3.4 billion. The transaction is structured in such a way that MTC acquired 85% on closure of the transaction and the remaining 15% will be acquired by MTC from the current shareholders within two years of the anniversary of the transaction.
Celtel's acquisition has benefited all stakeholders. Customers benefit from continued investment in network quality and further growth of coverage into rural areas. All 3,500 African staff of Celtel received a sale bonus which averaged 6 months of salary. The Africa investment funds that invested in Celtel will now be in a position to re-invest the handsome returns into new and exciting opportunities that the African continent has to offer.
Celtel's CEO, Marten Pieters, who attended the awards ceremony in Johannesburg, South Africa expressed his gratitude at winning this year's Infrastructure Deal of the Year Award: 'We are delighted that Celtel and our new owner, MTC, have received this prestigious award. The award recognizes the importance of continued and increased investment into Africa which is so important for growth and stability on the continent. Celtel and MTC are very bullish about the opportunities African markets offer which is reflected in our growth of more than 50% per annum. We will continue our efforts to make life better for all our customers in line with our brand promise.'
