The CEO of investment firm Emirates International Telecommunications (EIT) expects to close the sale of stakes in two telecoms companies within the next few months.
Deepak Padmanabhan, the head of EIT, told reporters that the formal processes to offload…
The CEO of investment firm Emirates International Telecommunications (EIT) expects to close the sale of stakes in two telecoms companies within the next few months.
Deepak Padmanabhan, the head of EIT, told reporters that the formal processes to offload its 35% stake in Tunisie Telecom and 26% stake in Dubai’s mobile phone retailer Axiom Telecom are underway.
First reported in July, the sale of the Tunisian incumbent has attracted more than 10 bidders. Korea’s KT Corp, Etisalat, Turk Telekom, Turkcell and Libya’s Lap GreenN are thought to be among them.
Saying the overall political climate in Tunisia has been a challenge, Padmanabhan reportedly noted that it would take a few months to close the sale of Tunisie Telecom, valued in July at approximately US$650m.
EIT bought its stake for US$2.25bn in 2006 when the Tunisian operator was partially privatised. But following the uprisings in the country in 2011, the telco experienced financial difficulties.
Credit Suisse is handling the transaction, which will help EIT cut its debt, Reuters reported.
The Axiom deal, managed by Citigroup, will take another few months, Padmanabhan said. The sale could fetch around US$350m, according to JP Morgan estimates.
EIT, controlled by Dubai Holding, has investments in several other telcos and ISPs including UAE’s Du, Greece-based Forthnet and Malta’s Go. But Padmanabhan said there are no planned sales for these assets.
