MTN has confirmed that it is in negotiations to possibly acquire Orascom Telecom or some of its businesses.
The company today issued a statement relating to last week's cautionary announcement, saying it is in discussions with Orascom Telecoms parent company, Weather Investments. These discussions could "lead to a transaction relating to the acquisition by MTN of control of Orascom Telecom and/or certain of its businesses", the statement reads.
Orascom Telecom is a leading international telecommunications company operating GSM networks in high growth markets in the Middle East, Africa and Asia, having a total population under license of about 510-million, with an average mobile telephony penetration of approximately 49% as of 31 December 2009.
Orascom Telecom operates GSM networks in Algeria, Pakistan, Egypt, Tunisia, Bangladesh and North Korea as well Canada, through its indirect equity shareholding in Globalive Wireless.
In addition it has an indirect equity ownership in Telecel Zimbabwe and, through its subsidiary Telecel Globe, Orascom Telecom also operates in Burundi, the Central African Republic and Namibia.
Orascom Telecom had almost 93-million subscribers as of 31 December 2009.
Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange.