MTC Acquires Premier African Mobile Operator Mobitel in Sudan

6 February 2006
Content from a Premium Partner
Celtel (Amsterdam)
press release

Through its African subsidiary Celtel International, MTC increases its stake in Mobitel from the current 39% to 100%.

MTC announces that it has successfully concluded the acquisition of 61% of Mobitel from Sudatel in a deal valued at US$ 1.332 billion.

Mr. Asaad Al Banwan, Chairman of MTC explained, ''We are very excited about this opportunity and we believe that this transaction will add great value to the MTC Group and will offer attractive returns to MTC shareholders. Mobitel is Sudan's premier mobile operator with over 1.9 million customers, up 70% in the last year. The funding of this transaction had already been secured following the capital increase from an equity rights issue of US$ 2.3 billion. We thank our shareholders for the confidence they placed in us, and I would like to extend my gratitude to the entire MTC's management team who worked so hard to conclude this transaction today.''

Commenting on the transaction Dr. Saad Al Barrak, Deputy Chairman and Managing Director, stated, ''MTC is committed to accelerating the growth of Mobitel and maintaining its dominant position in the dynamic Sudanese mobile market. This represents a great opportunity that will allow us to fully integrate Mobitel to the MTC family and take advantage of Group synergies. We are also keen on expanding our operations throughout Sudan including the Southern region of Sudan. Building on our expertise in Africa through our subsidiary Celtel we expect to add over 1 million customers during the next 12 months in Sudan.''

Major Advantages

The acquisition of Mobitel represents a unique opportunity to gain full management control of a mobile business in one of Africa's fastest growing markets and is consistent with MTC's strategy to expand its footprint through selective acquisitions in the Middle East, Africa and beyond.

Exposure to a growing market with great potential.

* Population of 34.4 million people- one of MTC's largest markets.

* Current market penetration of 7% with significant further growth potential.

* Fast growing and young population forecasted to grow at 2.6% CAGR (Cumulative Annual Growth Rate).

* Strong GDP growth expected as a result of increasing oil revenues and the recent peace treaty between the north and south.

Uniquely positioned to capture the benefits of Mobitel.

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

* Leverage the cross border opportunities with neighboring Celtel operations in Chad, Kenya, DRC and Uganda.

* Attractive opportunities to link the Middle East and African markets.

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