MTC confirms acquisition of Celtel

MTC offered to pay US$2.89 billion for the 85% stake in Celtel, with the entire acquisition set to cost US$3.4 billion.

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By  Tawanda Chihota Published  May 5, 2005

Kuwaiti operator MTC has confirmed its acquisition of an 85% stake in Celtel International; effectively ending the threat of legal challenge that had been considered by rival Celtel bidder MTN. MTC has agreed to acquire the remaining 15% of the outstanding shares in Celtel within two years. MTC offered to pay US$2.89 billion for the 85% stake in Celtel, with the entire acquisition set to cost US$3.4 billion. “Our offer was for 85% (in order) to leave the 15% with these partners (Celtel stakeholders) so they could stay on board as long as possible as strategic partners. We retained the full management of Celtel in addition to five original board members out of nine,” MTC Group managing director Saad Al Barrak told CommsMEA. Mo Ibrahim, Celtel’s founder and chairman is set to stay on in his capacity as non-executive chairman. MTC has also announced that Connectiva Systems, a provider of revenue assurance solutions has been selected to supply its revenue assurance product as a foundation of the operator’s global revenue maximisation effort.

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