The Celcom Group has acquired a 50,5% state in the business of Nile Com, the exclusive MTN dealer in Uganda. MTN is Uganda's biggest cellular network operator.
Nile Com operates 7 MTN-branded retail outlets selling mobile telecommunications product and controls 1 200 sub-dealers.
The acquisition offers Celcom an opportunity to secure a significant distribution footprint in Uganda, according to a statement from the company.
Uganda is expected to present significant growth opportunities in the next few years as, at present, there is only limited mobile telephone penetration within the populationas well as a limited service offering – mainly pre-paid voice and SMS.
In addition, Celcom Group has an option to acquire an additional 15% of the share capital in the new entity, Celcom Uganda, in 2009.