Orascom Telecom buys Namibia's Cell One in US$59 million cash deal
Egyptian telecom giant Orascom Telecom’s new subsidiary Telecel Globe has bought Namibian mobile operator Cell One in a $59 million cash deal last Wednesday. Telecel Globe has bought Cell One as part of its strategy of targeting licences and mobile operators in small and medium-sized developing countries with high growth potential.
"Cell One is well positioned in the Namibian market to become the key provider of competitive mobile voice and data services. Telecel Globe expects the investment in Cell One to have a positive effect on the brand, the customers and Namibia as a whole," Telecel Globe Chief Executive Kai Uebach said.
Telecel Globe has already paid $32 million for Cell One, with the balance due in January 2010. Orascom said Cell One operated a GSM network with 198,000 active subscribers and had a market share of over 20 percent. It added that Namibia had mobile penetration of close to 50 percent at the end of 2008.