AFRICAN LAKES SELLS EGYPTIAN ISP MENANET BACK TO ITS ORIGINAL OWNER
In a negotiated deal, African Lakes sold 100% of its ownership of the Egyptian internet company to the former owner and existing MenaNet Chief Executive Officer, Gamal Marwan earlier this month.
MenaNet Communications is one of the leading Egyptian ISPs with dial-up coverage offering services most of Egypt’s metropolitan cities. Based in Cairo, it offers a wide range of ISP services including dial-up, leased lines, XDSL, WAP and web design & Hosting.
"The existing management feels that with the planned consolidation in the operational expenses and the expansion of it’s broadband and value added services, the company should be cash flow positive again by July and profitable again by the end of the year," said MenaNet’s Chief Executive Officer Gamal Marwan.
"The group has restructured over the past eighteen months and our current focus is on Internet connectivity driven through Africa Online in sub-Saharan Africa," said ALC Chief Operating Officer Lesley Davey. "This decision effectively required us to look at selling those subsidiary companies that did not fit with our strategy moving forward."
"The MenaNet current team have been in place for several years and have an extensive knowledge of the industry and the business in particular. They indicated a willingness to take over and to continue their executive roles."
ALCs shareholding in GDBC, owned through Menanet, has been sold as part of this deal but the commercial supply of bandwidth contract between GDBC and Africa Online remains in place at this time.