Vodafone Egypt nears market leader by subscribers

July 26, 2010 By Leave a Comment

July 25 (Reuters) – The Egyptian unit of Vodafone (VOD.L) may have overtaken Mobinil (EMOB.CA) last quarter as the country’s largest provider of mobile phone subscriptions, data shows.

Egypt’s three mobile operators — the third is a subsidiary of Abu Dhabi-based Etisalat (ETEL.AD) — are locked in a pricing spiral as they seek to grab market share before saturation.

Total subscriptions in the most populous Arab country in May declined to 58.3 million in the first monthly drop in seven months, government data released last week showed.

Analysts say the fall, due in part to a new registration system and the delayed rollout of a numbering plan, most likely hit Mobinil harder than its two rivals. [ID:nLDE66L00P]

Vodafone Egypt, which had 25.79 million subscriptions at the end of June, gained almost 1.2 milion during the second quarter, according to its latest figures.

Mobinil, which is due to issue second quarter results on Tuesday, had 26.12 million subscribers at end-March.

Vodafone customers in addition bring in a significantly higher average revenue per user (ARPU) than Mobinil. The landline monopoly Telecom Egypt (ETEL.CA) has a 45 percent stake in Vodafone Egypt, while Mobinil is co-owned by France Telecom (FTE.PA) and Orascom Telecom (ORTE.CA).

For a preview of Mobinil results, please click here [ID:nLDE66I0FT] (Reporting by Alastair Sharp; Editing by Sugita Katyal)

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MTN shares surge after Orascom talks fail

June 11, 2010 By Leave a Comment

(Reuters) – Shares in MTN Group (MTNJ.J), Africa’s biggest mobile phone operator, rose over four percent on Thursday after the collapse of talks with Egypt’s Orascom Telecom (ORTE.CA) about a potential acquisition.

Hot Stocks

MTN and Orascom Telecom said in separate statements on Wednesday that talks had been called off, sinking a deal that could have created the world’s third-largest mobile operator.

While investors have sold off shares of MTN in recent weeks on concerns it would overpay for Orascom’s assets, not all markets participants saw the end of the deal as a positive.

“There can be little doubt that MTN shareholders are growing impatient and there is now likely to be a great deal of pressure on the group’s executive management to deliver new growth streams and revenues,” said Lindsey Mc Donald, an analyst at Frost & Sullivan.

MTN has now failed to seal a deal four times in the last three years, underscoring its desperation to grow beyond core markets of South Africa, Nigeria and Iran.

The failure of the Orascom talks could also fuel more speculation about a potential deal with India’s Reliance Communications (RLCM.BO).

Reliance Comm, India’s No.2 carrier, said on Sunday its board had agreed to sell up to a 26 percent stake of the firm.

Market players have speculated that MTN and Abu Dhabi’s Etisalat (ETEL.AD) could be looking to buy the stake. MTN has said it is not in talks with Reliance Comm.

Shares of MTN were up 4.4 percent at 105.85 rand as of 0927 GMT, outperforming a 1 percent gain in the Top-40 index .JTOPI.

MTN said in late April it was in talks about acquiring Orascom or some of its assets. The deal was hampered by Algeria’s government, which wants to buy Orascom’s unit in that country.

Without the money-spinning Algerian unit, Djezzy, the deal would have little meaning for MTN, which is desperate to expand and needs a foothold in North Africa.

But Frost & Sullivan’s Mc Donald said there were still some investment opportunities for MTN in Africa.

“It is now up to management to decide whether they are going to follow their traditional approach of acquiring an entire group, or if they would consider the purchase of a telecoms company operating in a single market.”

(Editing by Matthew Tostevin and Simon Jessop)

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South African Markets – Factors to watch on June 10

June 11, 2010 By Leave a Comment

June 10 (Reuters) – The following company announcements, scheduled economic indicators, debt and currency market moves and political events may affect South African markets on Thursday.

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GLOBAL MARKETS

Asian stocks rose on Thursday on better-than-expected Chinese exports and assurances from Federal Reserve Chairman Ben Bernanke that the U.S. economic recovery was on solid footing. [ID:nSGE659058]

SOUTH AFRICAN MARKETS

South African stocks jumped on Wednesday, halting a recent decline, led by miners after China’s booming export data boosted commodity prices, while the rand was little changed as importers kept the upside move in check. [.J]

MTN Group (MTNJ.J)

MTN ended talks with Egypt’s Orascom Telecom (ORTE.CA) about a potential acquisition, sinking a deal that could have created the world’s third-largest mobile phone operator. [ID:nSGE65902J]

Life Healthcare (LHCJ.J)

The private hospital group is set to debut on the Johannesburg Stock Exchange following its $687 million IPO. The company may struggle in its debut, some analysts say, as risk- averse investors shy away from new offerings. IPO price was 13.50 rand per share. [ID:nLDE6581D5]

Standard Bank (SBKJ.J)

South Africa’s largest lender by assets said it is in not in talks to sell its business in Argentina, denying a local magazine report. [ID:nLDE6582JR]

CURRENCY

South African Finance Minister Pravin Gordhan this week met key manufacturers to discuss their calls for the government to weaken what they say is a an overvalued domestic currency. [ID:nLDE6582LR]

GOLD XAU=

Gold regained some footing on Thursday after being pressured by comments from Federal Reserve Chairman Ben Bernanke, but a firm stock market and steadier currencies are likely to cap gains. Spot gold XAU= was at $1,232.60 an ounce by 0254 GMT, up $2.25 from New York’s notional close on Wednesday. [GOL/]

WALL STREET

U.S. stocks fell on Wednesday in another late-day roller-coaster ride, dragged lower by BP and other energy shares as the U.S. probe of the oil spill in the Gulf of Mexico deppened.

The Dow Jones industrial average .DJI dropped 0.4 percent to 9,899.25. The Nasdaq Composite Index .IXIC lost 0.54 percent to 2,158.85. [.N]

EMERGING MARKETS

For the top emerging markets news, double click on [nTOPEMRG]

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Some of the main stories out of the South African press:

BUSINESS DAY

-Vodacom sale of WBS stake near finalty

-Search for missing link between economics and football success

BUSINESS REPORT

-Deeds scandal spreads

-Collective World Cup sickie may cost R750 mln

-World Cup gives SMEs a boost

THE STAR

-Bafana fan frenzy

(Reporting by David Dolan)

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Egypt Orascom pays last of principal in tax claim

April 12, 2010 By Leave a Comment

CAIRO, April 11 (Reuters) – The Algerian unit of Orascom Telecom (ORTE.CA) paid $113 million to the Algerian tax authority representing the last of the principal the authorities say Orascom owes for 2005-2007, the firm said on Sunday.

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The Cairo based firm added that payment of $25 million of penalties had been suspended pending a court ruling. It has now paid $597 million in principal plus $49 million in penalties.

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Egypt Orascom pays last of principal in tax claim

April 12, 2010 By Leave a Comment

CAIRO, April 11 (Reuters) – The Algerian unit of Orascom Telecom (ORTE.CA) paid $113 million to the Algerian tax authority representing the last of the principal the authorities say Orascom owes for 2005-2007, the firm said on Sunday.

Telecommuncations Services

The Cairo based firm added that payment of $25 million of penalties had been suspended pending a court ruling. It has now paid $597 million in principal plus $49 million in penalties.

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China Mobile to invest $300 mln in Pakistan-spokesman

April 3, 2010 By Leave a Comment

ISLAMABAD, April 2 (Reuters) – Chinese telecom giant, China Mobile (0941.HK), will invest $300 million in Pakistan in 2010, mainly on expansion of its infrastructure in the south Asian country, a company spokesman said on Friday.

Telecommuncations Services

Pakistan’s telecom sector has boomed over the past 10 years and now has over 95.40 million mobile phone users, from some 300,000 in 2000, with cellular mobile density of over 58 percent, according to its state telecommunication authority.

But growing concerns over a Taliban insurgency and chronic power shortages have put off investors, with net foreign investment down 45.9 percent to $1.02 billion in the first eight months of the 2009/10 fiscal year.

China Mobile, which operates in Pakistan through its overseas subsidiary, China Mobile Pakistan, has some 6.93 million subscribers in Pakistan, according to the Pakistan Telecommunication Authority (PTA) website (www.pta.gov.pk/).

The company’s chairman, Wang Jianzhou, was in Pakistan this week where he met government officials to discuss expansion and investment plans, said the spokesman of the company known in Pakistan by its brand name of Zong.

“During the visit Mr Wang made the announcement that for this year our investment in Pakistan will be $300 million,” the spokesman said.

Last year, China Mobile’s investment in Pakistan was $500 million, while total investment in the country has reached $1.66 billion, he said.

Pakistan’s mobile operators include CM PAK of China Mobile, Mobilink, a unit of Egypt’s Orascom Telecom (ORTE.CA), Norway’s Telenor (TEL.OL), Ufone, a subsidiary of Pakistan Telecommunication Co Ltd (PTCA.KA), Warid Telecom Pakistan, a joint venture between Abu Dhabi Group and SingTel Group (STEL.SI), and Instaphone, which is not publicly traded.

Mobilink has the largest share with 31.06 million subscribers, according to the PTA website. (Reporting by Augustine Anthony; Editing by Muralikumar Anantharaman)

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Orascom Telecom says not paying fines on FT deal

April 14, 2009 By Leave a Comment

CAIRO (Reuters) – Orascom Telecom (ORTE.CA)(ORTEq.L), the largest Arab mobile operator by subscribers, said on Sunday it was not paying any fines over a delay in a transaction with France Telecom (FTE.PA).

France Telecom said on Thursday that Orascom should be paying $50,000 per day in penalties, accusing the Egyptian firm of missing an April 10 court-ordered deadline to sell its shares in Egyptian mobile operator Mobinil (EMOB.CA) to France Telecom.

“We are not paying any fines because we tried to make the deal go through,” an Orascom Telecom spokesman said.

Orascom said on Thursday the deal had not gone through because the French company had not sent payment. Orascom said it had complied with the deadline.

Orascom has said it could gain $1.7 billion from selling its stake in Mobinil, which it would use on acquisitions, including possibly of Moroccan mobile firm Meditel.

The court ruled that Orascom must sell its stake in a holding company that owns 51 percent of Mobinil. Egypt’s market regulator says if France Telecom purchases the holding company from Orascom, it must also tender for the other 49 percent of the company that is freely floated. Orascom owns 20 percent of those freely-floated shares.

(Writing by Will Rasmussen; editing by Mike Nesbit)

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