Orascom’s Telecel Globe acquires Cell One in Namibia for US$59 mn

Telecel Globe, Orascom’s African subsidiary, has acquired 100 per cent of Namibian’s second mobile operator Cell One for US$59 million.

Mobile penetration in Namibia stands at approximately 50 per cent of the 2.1 million inhabitants

Cell One has 198,000 active subscribers since launch in March 2007, equating to more than 20 per cent market share.

Egypt’s Orascom stated that US$32 million had already been paid in cash with the balance due in January 2010. Telecel Globe has acquired all the shares previously held by majority shareholder Norway-based Telecom Management Partner (TMP) as well as fellow shareholders, while the debt assumed as part of this transaction is non-recourse on Telecel Globe.

“Cell One is well positioned in the Namibian market to become the key provider of competitive mobile voice and data services,” commented Kai Uebach, Telecel Globe’s CEO. “This investment will further strengthen the traditionally good relationship and mutual trust between Namibia and Egypt.”

Orascom said Namibia is amongst the wealthiest countries in sub-Saharan Africa with a GDP per capita of US$5,200. The country has a population of approximately 2.1 million and a mobile penetration of close to 50 per cent at the end of 2008.

Cell One’s only mobile competitor is the Mobile Telecommunications Company which is partially owned by Portugal Telecom.

Telecel Globe’s acquisition is part of the company’s strategy to target licences and mobile operators in small and medium-sized developing countries that have high growth potential, and follows recent acquisitions of U-Com in Burundi and an operation in the Central African Republic.

Telecel Globe’s subsidiaries combined with Orascom’s operations in Algeria, Pakistan, Egypt, Tunisia, Bangladesh, Zimbabwe and North Korea, brought the group’s total subscribers to 79 million as of September 30, 2008.