The sale of towers owned by Egypt’s Mobinil is continuing, TelecomFinance has learnt.
Sources with direct knowledge of the situation rejected a recent report claiming that the process was put on hold in light of the instable political situation in the…
The sale of towers owned by Egypt’s Mobinil is continuing, TelecomFinance has learnt.
Sources with direct knowledge of the situation rejected a recent report claiming that the process was put on hold in light of the instable political situation in the country.
Between 3,000 and 3,500 towers are part of the process and Mobinil, owned by French telco Orange, plans to offload approximately half of them while only selling the rights for the other half.
One source said that given the increased instability in Egypt since the summer, Orange might need to adjust the portfolio. They might only be able to sell a smaller number of towers now, the source suggested.
Proceeds will allow Mobinil to focus on its core operations but also improve its balance sheet.
The deal is in its second round, sources confirmed, with one of them adding that a deadline for binding bids would depend on on-the-ground due diligence, which has yet to take place. Another source estimated final offers to be due within the next four to six weeks.
Bidders include non-African strategic investors backed by private equity as well as two local towercos. Eaton is thought to be among them, but the other one remained unclear. Leading players in the region include Helios, American Tower and IHS.
Lazard is advising Mobinil on the sale, which could close in early 2014 and would mark one of the largest telecoms infrastructure deal in Africa in recent months.
In June, Telkom Kenya, which is controlled by the French incumbent, agreed a tower management deal with Eaton. Earlier in the year, in April, Orange had sealed tower deals in the Ivory Coast and in Cameroon.
Meanwhile, local reports recently suggested that Mobinil was looking to secure a E£2.5bn (US$358m) syndicated loan, which would allow it to expand the business and pay off debts maturing in 2014 and 2015.
