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MTN drops Orascom bid, gets $2.1bn loan
10 June 2010
Regulatory hurdles in Algeria mean MTN has dropped its bid to buy five operations from Orascom Telecom
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MTN
Orascom
Weather Investments
Dzejjy
Algeria
South Africa’s MTN Group has ended talks to buy assets from Egypt’s Orascom Telecom. The company terminated its discussions with Orascom’s parent company, Weather Investments, due to regulatory problems.
The Algerian government did not approve the sale of Orascom’s local Djezzy unit, which has the largest share of the Algerian market and is also Orascom’s single biggest source of revenue. MTN was also seeking to acquire Orascom’s mobile businesses in Burundi, Central African Republic, Namibia and Zimbabwe.
Separately, MTN Nigeria has signed a $2.1 billion deal with a consortium of 15 Nigerian banks including Afribank Nigeria, Bank PHB, Citibank Nigeria, Diamond Bank, Ecobank Nigeria, First City Monument Bank, Fidelity Bank, First Bank of Nigeria and Guaranty Trust Bank.
The banks have extended a facility of $1.652 billion from $1.368 billion to MTN. The firm has also received an additional funding of nearly $450 million from two foreign banks. GTB