Egypt’s Orascom Telecom (ORTE) is still in talks with international telecoms firms to sell some of its African assets, after negotiations with South Africa’s MTN failed last week, a newspaper reported on Sunday.
"Orascom Telecom Holding continues to hold a number of negotiations to sell its African units, with the exception of its (Algerian) unit Djezzy," the daily al-Mal said, citing an unnamed source closely connected with the talks. Orascom was not immediately available to comment.
In April, a source close to Orascom’s talks with MTN told Reuters that the Egyptian firm was also talking to two other companies over the sale its African assets, but did not say which ones. Analysts say there are plenty of candidates to buy Orascom’s operations, which run from North Korea to North Africa. Abu Dhabi-listed Etisalat has surfaced as a possible candidate after its chairman was quoted as saying it was interested in Djezzy.
Etisalat competes through a subsidiary with Orascom’s Mobinil (EMOB) in Egypt.
Orascom and MTN had been in talks to sell some or all of the Egyptian firm’s assets to MTN, but the negotiations failed after the Algerian government refused to allow Orascom to sell its top revenue earner Djezzy to MTN.
Without Djezzy, analysts said a broader deal would have little meaning for MTN, which is eager to expand and needs a foothold in North Africa. Shares in Orascom tumbled last week after news the talks had ended stamped out lingering speculation that the Egyptian firm might still sell MTN some of its smaller African assets, such as its Telecel Globe-branded sub-Saharan units.
