Millicom to sell DR Congo business to Orange for USD 160 mln

News Wireless Congo, The Democratic Republic of the 8 FEB 2016
Millicom to sell DR Congo business to Orange for USD 160 mln

Millicom has signed an agreement for the sale of its Tigo business in the Democratic Republic of Congo (DRC) to Orange. The transaction is subject to regulatory approvals. In a statement, Millicom said it will sell 100 percent of the share capital in the holding company Oasis for a total cash consideration of USD 160 million. Mauricio Ramos, CEO of Millicom said the sale of Tigo DRC is in line with the group's strategy of supporting consolidation and concentrating resources in its most promising markets. Millicom said it will use the proceeds from the sale to strengthen its balance sheet allowing the company to reinvest in its existing Latin American and African markets, improving earnings and cash flow and reducing leverage.

Orange said the takeover will significantly enhance its presence in the second-largest mobile market in Central and West Africa, which counts more than 40 million subscribers. The market is led by Vodacom, and Airtel and Africell are also active in DRC. Tigo DRC is a "perfect fit" for Orange, with little geographical overlap, the operator said. 

This is Orange's third acquisition in Africa since the start of the year. In January it agreed to buy Cellcom in Liberia and Airtel's operations in Burkina Faso and Sierra Leone. These bring Orange's footprint in Africa to 20 countries. 

Categories:

Mobile

Companies:

Orange,  Millicom,  Tigo

Countries:

Congo, The Democratic Republic of the

Tags:

M&A buyouts & divestments

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