Broadband - Voip

South Africa based MTN has said that they are acquiring Investcom in a deal worth around $5.53 billion. This deal would result in an entity, which would be the biggest mobile telecoms operator in Africa and the Middle East. 

 

MTN is bidding $3.85 per share for 100 per cent of Investcom in a transaction. The deal would also see MTN’s presence growing from 11 to 21 countries and its subscriber base from 23 to 28 million. 

 

The deal would be conducted in an all cash transaction. The shareholders in Investcom would be given a cash and share alternative. MTN’s offer price is a 27.1 per cent premium over the $15.15 closing price of Investcom’s Shares last Friday. 

 

The worth of the combined entity would be around USD 23 billion which would dwarf the current market giants Orascom which is valued at USD 15 billion. 

 

However, the deal would see MTN making an entry into some volatile territories like Syria, Afghanistan, Yemen, and Sudan.

This entry was posted on Tuesday, May 2nd, 2006 at 11:12 pm and is filed under Business World. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.