FT-Orange to acquire Congo Chine Télécom
Pascale Paoli-Lebailly ©RapidTVNews | 21-10-2011France Telecom-Orange is to acquire 100% of Congo Chine Télécom, 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 CCT’s 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 ZTE’s 51% share into CCT. It will also pay $7 million (€5 million) for the Congo government’s 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 Télécom 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). .
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