Feb 7 2005

KUWAIT CITY: Mobile Tele-communications, Kuwait's largest mobile operator, has acquired Sudan's premier mobile company in a deal worth $1.33 billion, MTC said yesterday.

MTC, which has held 39 per cent of Mobitel through its African subsidiary CelTel, acquired the remaining stake from the Sudanese government in a deal concluded on Sunday to become the sole owner of the company, the statement said.

"We are very excited about this opportunity and we believe that this transition will add great value to the MTC Group and will offer attractive returns to MTC shareholders," chairman Asaad Al Banwan said.

Mobitel increased its customer base by 70pc last year to 1.9 million users, Banwan said.

MTC said it plans to invest around $500m through 2007 to develop Mobitel and further expand its customer base.

Last year, MTC acquired Dutch firm CelTel which operates in 13 African nations at a cost of around $3.4bn. In December, CelTel bought a majority stake in Madagascar's Madacom.

The company's deputy chairman Saad Al Barrak also announced that MTC is bidding for the third GSM licence in Egypt