On The Money - In Brief

Mergers, Acquisitions and Financial Results

- Telecel Globe, a subsidiary of Egypt’s Orascom Telecom, has announced its objectives to develop the mobile network of its newly acquired Namibian subsidiary Cell One by ‘investing hundreds of millions of Namibian dollars, expanding network coverage to reach 90% to 95% of the population in one and a half years, and doubling retail presence over the next year.’

- Orascom Telecom and Telecom Egypt have reached agreement in principle with Dubai based VTEL Holdings Ltd for the sale of Lacom. The two Egyptian companies each own 50% the Algerian second national operator (SNO), which was officially dissolved in November 2008. The Regulatory Authority of Post and Telecommunications (ARPT) will perform an audit on Lacom before authorising its sale, paying particular attention to Lacom’s non-compliance with the obligations of its licence award. Penalties will be charged for the SNO’s inability to meet the requirement to provide national coverage with its network. The level of penalties charged is likely to be decisive in determining the sale price.

- M-Web has confirmed rumours that it will be retrenching about 7% of its staff. The number of jobs is about 66, out of about 1 000, according to its CEO, Rudi Jansen. insiders suggest that it is about M-Web focussing on its core offering as an internet service provider, and attempting to get rid of its non-core offerings.