MTC REPORTS RECORD FIRST HALF YEAR PROFITS AND SECURES $4 BILLION LOAN FACILITY
MTC Group (owners of Celtel) has reported that it is operating in 20 countries on 2 continents serving over 22.9 million customers as of June 30, 2006 an increase of 149% compared to the same period last year. The company's customer growth is primarily driven by its African operations; and its financial performance is driven by its more mature Middle Eastern operators.
The company reported that its revenues exceeded US$1.72 billion during the first six months of 2006, an increase of 121% relative to the first half of 2005. These top line numbers reflect the scale and scope of MTC's operations today and represent very impressive growth that has been achieved through organic growth, new license awards, and acquisitions over the past three and a half years since the company embarked on its profitable expansion strategy. The group earned a consolidated net profit of US$ 477.91 million for this period
"MTC has now attained critical mass that allows it to leverage its size for the benefit of its shareholders and customers as well as providing a diversified stream of cash flows that enhance its place among its peers," said Mr. Asaad Ahmed Al-Banwan, Chairman of MTC. "The acquisitions of the shares we did not own in Mobitel, Sudan (61%) in February coupled with the 65% of Vmobile, Nigeria that we recently concluded have added two very important new operators to our portfolio and we are continuously scanning for new profitable opportunities that will enhance our footprint further."
MTC via its subsidiary Celtel has announced that its African networks have seen a solid growth of their number of customers. Below is a breakdown per country provided by the company:
Kuwait's MTC also announced this week that it has signed the general syndication agreement for the US$ 4 billion credit facility that will be used to fund MTC's future acquisitions and general corporate needs. The credit facility was fully underwritten by BNP Paribas, Calyon, Credit Suisse, and UBS who all acted as Joint Mandated Lead Arrangers and Bookrunners. NBK Capital the investment and merchant banking subsidiary of National Bank of Kuwait acted as financial advisor on the transaction.
In addition to the Bookrunners, eight banks and financial institutions joined the general syndication at the Mandated Lead Arranger level each with a commitment of at least US$200 million, eight banks and financial institutions joined at Lead Arranger level each with a commitment of US$100 million, and five banks and financial institutions joined at the Arranger level each with a commitment of US$50 million, and fourteen banks and financial institutions joined at the Co-Arranger level each with a commitment of US$35 million or less.
Allen & Overy acted as legal adviser to the syndicate of banks, while Cleary Gottlieb Steen & Hamilton acted as legal advisor to MTC.