MTN confirms Orascom talks

Johannesburg - South African telecommunications company MTN Group (MTN) confirmed on Wednesday that is in discussions with Orascom Telecom's parent company, Weather Investments, which may or may not lead to a transaction relating to the acquisition by MTN of control of Orascom Telecom and/or certain of its businesses.

Media speculation has been rife of a deal between the two parties after MTN issued a cautionary announcement on April 23.

MTN shareholders were again advised Wednesday to continue to exercise caution in trading in their MTN securities until such time as a further announcement is made.

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 approximately 510 million with an average mobile telephony penetration of approximately 49% as of end December 2009.

Orascom Telecom operates cellphone networks in Algeria (OTA), Pakistan (Mobilink), Egypt (Mobinil), Tunisia (Tunisiana), Bangladesh (banglalink), North Korea (koryolink) and, through its indirect equity shareholding in Globalive Wireless, Canada (Wind Mobile). It also 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 December 31 2009. Orascom Telecom is traded on the Cairo & Alexandria Stock Exchange and on the London Stock Exchange.

- I-Net Bridge