Telecel Eyes Mango Deal

Nov 25, 2002

A LEADING Egyptian company, Orascom Telecom, is selling its shares in uganda telecom, operators of the Mango mobile phone service, which it co-owned with the Swiss-registered Telecel International and Detecon of Germany.

Orascom ready to sell stake in Uganda telecom
By Yunusu Abbey


A LEADING Egyptian company, Orascom Telecom, is selling its shares in uganda telecom, operators of the Mango mobile phone service, which it co-owned with the Swiss-registered Telecel International and Detecon of Germany.
Orascom wants to concentrate its resources for developing its networks in North Africa and the Middle East.
Orascom, which belongs to an Egyptian businessman, Najib Sawiris, is said to be in the final stages of selling its 20% shares in Ucom to Telecel International for an undisclosed amount.
“There is no ulterior motive about the share transfer. Under Orascom's global strategy, the Egyptian company wants to pull out of sub-Saharan Africa and concentrate in North Africa and the Middle East. That's the major reason they're quitting," said one source.
After buying the 51% Government stake in May 2000 at $34m, the consortium(Orascom,Telecel and Detecon), floated Ucom Limited to run uganda telecom. Orascom had a 20% stake in Ucom.
Miko Rwayitare, a Democratic Republic of Congo national, owns Telecel.
"Orascom and Telecel have for the past couple of months been engaged in a series of discussions in South Africa and Europe over the share transfer. They are now due to conclude the deal," said a source.
Aimable Mpore, the uganda telecom acting managing director, said on Saturday since the issue was still under negotiation, he was not in position to discuss it. "We shall inform you when everything has been finalised," Mpore said.
Mpore was formally a Business Development Manager with the Geneva-based Telecel International.
A German, Peter Sommer of Detecon, was appointed the first uganda telcom managing director soon after Ucom took over in May 2000.
Sources said: "The deal is almost sealed now. Letters from the shareholders to relevant Government officials informing them about the share transfer, are being dispatched this week."
"Certainly, the Ministry of Works, Housing and Communications, Uganda Communication Commission and the Privatisation Unit have to be informed about the changes since Government still holds 49% shares in UTL," added the source.
Uganda telecom has 170,000 subscribers on its mobile and land lines. The cellular line, launched in January 2001 and operates under the brand name of Mango,has to-date 120,000 subscribers.The land/fixed service has 50,000-registered clients. Ends

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