FT-Orange to acquire Congo Chine Tlcom

Pascale Paoli-Lebailly RapidTVNews | 21-10-2011

France Telecom-Orange is to acquire 100% of Congo Chine Tlcom, a mobile operator in the Democratic Republic of the Congo.
The French operator has signed two agreements with co-owners ZTE, a Chinese telecoms equipment manufacturer, and the government of the Democratic Republic of the Congo.
France Telecom-Orange will contribute its marketing, commercial and technical expertise, as well as the Orange brand to leverage CCTs solid network assets, the group stated in a release.
This acquisition, which will close shortly, is based on two transactions. France Telecom-Orange will pay $10 million (7 million) for ZTEs 51% share into CCT. It will also pay $7 million (5 million) for the Congo governments 49% share into the company. The combination of both transactions is consistent with an enterprise value of $196 million (143 million) for CCT or 2.1 times expected 2011 revenues, France Tlcom explained.
ZTE will keep providing network equipment and services to CCT as its preferred supplier, and with the strategic financing support from China Development Bank (CDB). .