France Telecom (FT) has confirmed earlier reports that it will buy 100% of Congo Chine Telecom (CCT).
The incumbent will pay US$10m to Chinese telecom equipment vendor ZTE for a 51% stake in CCT, and will pay an additional US$7m to the government of the…
France Telecom (FT) has confirmed earlier reports that it will buy 100% of Congo Chine Telecom (CCT).
The incumbent will pay US$10m to Chinese telecom equipment vendor ZTE for a 51% stake in CCT, and will pay an additional US$7m to the government of the Democratic Republic of Congo for its 49% stake in the company.
FT explained that CCT’s operations will be financed “from internally generated funds, restructured external loans and a total of US$185m as capital increase provided by France Telecom-Orange in several instalments.”
FT added that “the combination of both transactions is consistent with an enterprise value of US$196m for CCT or 2.1 times expected 2011 revenues.
“Furthermore, CCT will pay US$71m to the government of the Democratic Republic of the Congo for improved licence terms (10-year extension, access to an additional 2 MHz in the 1,800 MHz range for 2G, and access to 10 MHz in the 2,100 MHz range for 3G) and associated fees.”
FT CEO Stephane Richard repeatedly said that his group aims to double revenues in Africa and the Middle East to E7bn by 2015.
Airtel, Millicom’s Tigo and Vodacom are also present on the DRC mobile market.
