French incumbent Orange has reached agreement to sell its struggling Ugandan subsidiary to Africell Holding.
Financial details have not been disclosed but TelecomFinance understands that the price tag is around US$10m for Orange’s 95% stake in Orange…
French incumbent Orange has reached agreement to sell its struggling Ugandan subsidiary to Africell Holding.
Financial details have not been disclosed but TelecomFinance understands that the price tag is around US$10m for Orange’s 95% stake in Orange Uganda.
The mobile operator is the fourth-largest in the country, with over 600,000 customers, and has been facing strong competition from MTN, Airtel and UT Mobile.
Orange launched a strategic review of its Ugandan and Kenyan units a few months back, in an attempt to either find strategic partners or exit the businesses. The process in Kenya is still ongoing.
Orange, which is present in more than 20 countries in Africa and the Middle East, reiterated in a statement that the region remains a “strategic priority”.
Several operators, including South African giants Vodacom and MTN, had reportedly been looking at Orange Uganda but the French company, advised by Lazard, eventually picked Africell.
The telecoms holding is already present in three African countries: The Gambia, Sierra Leone and DR Congo.
The transaction is expected to close within the next few months once regulatory approval has been secured.
