February 8, 2016
Tigo DRC, the largest mobile operator in Democratic Republic of Congo, is to be bought by
French telecommunication company Orange Group in a deal valued at $160 million.
Mauricio Ramos, Chief Executive Officer of Millicom said the sale is in accordance with the company’s strategy to focus its resources in strengthening its most promising markets in Africa and Latin America.
The company said it plans to use the proceeds from the sale to bolster its balance sheets so it can reinvest in its other existing operations.
Tigo DRC will be the latest in a string of acquisitions in Africa that the French telecom group, Orange, has picked up this year, giving it additional 40 million plus subscribers.
Orange said the deal is a perfect fit for its growing footprint in Africa due to geographical and cultural vantage point. DRC has the second largest mobile subscribers in Central and West Africa, after Nigeria.
Under the agreement, Orange will buy 100 percent of the share in capital in Oasis SA from Millicom International Cellular for a total cash consideration of $160 million, giving the Luxembourg-based Millicom capital to improve earning and cash flow and reduce leverage.
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