Orascom scores Greek operators in US$4.4 billion
“We expect to create significant value for the group by adding TIM Hellas to our portfolio and by further building on group wide synergies at all levels,” said Orascom CEO Naguib Sawiris.
Egyptian magnate Naguib Sawiris has bought Greek cellco TIM Hellas for US$4.4 billion.
The news comes after speculative reports claimed Sawiris-backed consortium Weather was on the verge of closing a deal with TIM Hellas, Greece’s third largest mobile operator. The deal will include TIM Hellas subsidiary Q-Telecom, Greece’s fourth largest cellco. In January 2006 UK-based investment firm Apax and Texas Pacific Group acquired Q-Telecom for US$466
million, having earlier shelled out US$2 billion for TIM Hellas in June 2005.
The price paid for TIM Hellas is inclusive of US$651 million equity along with US$3.7 billion of net debt at end of year 2006.
The deal marks Sawiris’ second foray into Europe and second investment in the Greek telecoms market. Weather brought Italy’s third largest mobile operator Wind in 2005 for US$15.1 billion, leaving the consortium with Wind’s 50% stake in Greek fixed-line and internet provider Tellas.
“We expect to create significant value for the group by adding TIM Hellas to our portfolio and by further building on group wide synergies at all levels,” said Sawiris.