Cell One sold to Egyptians

CELL One yesterday announced the acquisition of 100 per cent of its shares by Telecel Globe, a subsidiary of Egyptian-based telecoms giant Orascom Telecom Holdings.

The N$580-million takeover, which came into effect yesterday, marks the end of the joint venture between Nampower (37 per cent), Telecom Management Partner (TMP) (39 per cent), Zeven Investment Corporation (12 per cent), Old Mutual (10 cent), and the PowerCom Educational Development Trust (2 per cent).
Speaking at the event, Telecel Globe’s Chief Executive Officer, Kai Uebach, stated that the new shareholder would ‘build on the notable achievement made so far and commit to develop Cell One to a real champion’.
It plans to invest several hundreds of millions of Namibian dollars into Cell One – expanding network coverage to reach 90 to 95 per cent of the population within the next 18 months, doubling its retail presence by the end of the year, upgrading and improving the level of services, continuing to invest in new products and services, and investing extensively in skills development and training of Cell One’s staff.
‘We will make Cell One the most advanced communication company in Namibia, providing the community of Namibia with excellent coverage, highest quality of speech, superior international connectivity and the most innovative services and offerings,’ Uebach remarked.
He added that Telecel would remain ‘truly Namibian’, ensuring that the company’s staff complement remains 99 per cent Namibian.
The 100 per cent purchase of Cell One effectively makes it completely foreign owned.
According to Uebach, the necessary permission from Government had been attained in this regard, ‘with the provision to, on equal terms, take on Black Economic Empowerment companies as shareholders.’ He said this process would begin in the next few weeks.
He also said that Telecel Globe already has a social responsibility foundation in place, and that Cell One’s current initiatives would be carried out under this umbrella body.
‘Being involved in and giving back to the community is going to be a critical part of the way we do business at Cell One. We will invest in targeted areas through a new Corporate Social Responsibility programme,’ he said.
Arild Hustad, President of TMP, which previously held a 39 per cent shareholding in Cell One, stated that the change in ownership of Cell One to Telecel Globe would place the company in a more competitive position in the telecoms market.
‘Being part of a bigger group of operators also guarantees better skills transfer and implementation of best practices, and Cell One is set to achieve the goal of becoming Namibia’s leading mobile operator,’ he said.
Telecel Globe, established only last year to scope out investments in small operators in Africa, Asia and southern Europe by targeting licences and mobile operators in small and medium-sized developing countries, has already acquired three different operators in Africa – in the Central African Republic, Burundi and Zimbabwe – with Namibia being the latest addition.
Its mother company, Orascom Telecom Holdings, operates networks in Algeria, Pakistan, Egypt, Tunisia, and Bangladesh, and currently boasts over 77 million subscribers to its networks.