Orange sells Uganda arm to Africell
Source: totaltele.com View: 253 Date: 2014-05-19

Orange on Monday agreed to sell its 65.9% stake in Orange Uganda to Lebanon-based Africell.

The deal adds a fourth market to Africell’s footprint. The telco currently has operating subsidiaries in the Democratic Republic of Congo, Gambia, and Sierra Leone. The group currently has more than 9 million active subscribers and expects to grow to 11 million by the end of the year.

In a statement, Orange said the sale will enable Orange Uganda to continue its development.

"This transaction marks a new step in the Orange group’s asset portfolio optimisation strategy for which Africa and the Middle East remain a strategic priority," said Orange.

Financial terms were not disclosed.

The announcement comes a little over two months after Orange launched a strategic review into its operation there as well as its business Kenya. A spokesman for the French incumbent told Total Telecom on Monday that as yet there is nothing to announce with regards to the latter.

Orange entered the Ugandan market in 2008 when it took a controlling stake in Hits Telecom Uganda, launching 2G and 3G services in 2009. It is the third-largest player by subscribers, with around 620,000 customers.

Orange aims to double emerging market revenues in the five years to 2015 as part of its Conquests 2015 strategy. However, the strategy also involves reviewing its footprint and exiting markets it stands no chance of taking the number one or two spot.

After the strategic review of Orange Uganda was announced, reports named MTN and Vodacom as potential buyers.

Meanwhile, Africell CEO Ziad Dalloul said that Uganda, which has a population of 37 million and a mobile penetration rate of 50%, "was well within the criterai we had set to further expand in Africa".

The company said it is looking to add one more market to its portfolio before the end of 2015.

This story was updated at 12:05 to include information about Africell’s subscriber base and strategy, and comment Ziad Dalloul.

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