France Telecom-Orange will strengthen its position in Africa after buying
51 percent stake in Congo Chine TÃ©lÃ©coms (CCT), the fourth-largest mobile
operator in the Democratic Republic of the Congo, from telecom equipment
company ZTE, for an initial consideration of $10 million.
The transaction is in line with France Telecom-Orange’s international
strategy, which aims to stimulate growth by entering high-potential emerging
Orange is already present in over 20 countries in the region and has
built up considerable experience developing networks and new services specifically
tailored to the needs of local markets.
“The acquisition of CCT is an important step in our policy of
expansion outside Europe, and contributes to our goal of doubling our revenues
in Africa and the Middle East by 2015,” said Stephane Richard, chairman and CEO
of France Telecom-Orange.
“I am delighted that France Telecom-Orange will be in a position to
provide our most innovative offers to the residential and business communities
in the Democratic Republic of the Congo, a promising economy endowed with vast
natural resources,” Richard added.
France Telecom-Orange will pay a preliminary price of $10 million (7
million euros) for the stake in CCT. Adjustments to that sum to reach a final
transaction price will be derived from the CCT’s 2011 financial statements and
CCT’s financial data on the date of the completion of the sale.
With 65 million inhabitants, the Democratic Republic of the Congo is the
fourth most populated African country but has mobile penetration rate of only
17 per cent, considerably less than many neighbouring countries. The continued
development of CCT, which holds a national mobile licence and has significant
market share in certain regions of the country, offers real potential for
growth over the next several years.
“We look forward to supporting the expansion of the CCT in the
Democratic Republic of Congo as a long term partner of France Telecom,”
said Shi Lirong, president and CEO of ZTE.
“The deal will help us focus on our core business and avoid competition
with customers in certain markets. It also will benefit the strategic
relationship between France Telecom and ZTE,” Lirong added.
In September 2011, ZTE and Telkom Kenya-Orange, a subsidiary or France
Telecom, introduced commercial use of the country’s fastest Uni-RAN-based HSPA+
network in Nairobi. The network allows Kenyans access to high-speed wireless
with a download rate of up to 21Mbps.
By Telecomlead.com Team