Third terms TERMS of bidding for the third mobile licence are now available with the National Telecommunications Regulatory Authority (NTRA). Bidders are invited to set up a technology neutral network using the GSM or CDMA system, but must offer second and third generation services. Several factors will be taken into consideration when making the technical evaluation such as that consortiums who bid for the licence have a local partner. Another factor is whether the companies will offer a portion of their shares publicly after two years of operating the network. The terms are available for $25,000 and an insurance of LE25 million. CIB deal sealed IN A DEAL worth $230 million, equivalent to a stock price of LE53.5 per share, the National Bank of Egypt has sold its 18.7 per cent stake in Commercial International Bank (CIB) to a consortium of investors that includes Ripplewood Holdings, Eton Park Capital Management and RHJ International. "We believe the investment environment in Egypt is favourable. The outlook for the Egyptian banking sector is positive and the CIB is well positioned to take advantage of the growth opportunities this presents," said Tim Collins, chief executive officer of Ripplewood Holdings. CIB reported a net income of LE610 million in the last fiscal year. Its market value is now LE8 billion, with assets of LE30 billion. According to Collins, the new investors will use every opportunity to ensure the bank grows, which might include acquiring the National Development Bank and bidding for the Bank of Alexandria. "The consortium will do whatever it takes to make CIB a premier institution," said Collins, who added the consortium had no exit plans. "We go into investment with the ambition to stay." BMW in Egypt LAST week Michael Ganal, head of sales and marketing at BMW, announced the launch of a new series model, the BMW X3, which will be produced in Egypt beginning in March and is expected to start retailing in the Egyptian market two months later. "We are certain about the future of economic growth in Egypt and we want to share in it. The production of this series of automobiles in Egypt is an important step on that path," said Ganal, who added that the newly launched series will join both BMW5 and BMW3 series models, both of which have been built in Egypt since 1997. BMW's local production partner since 2004 has been the Bavarian Auto Group (BAG). Other BMW models are imported. Last year was successful for BMW Group not only in Egypt but worldwide. Overall retail volume rose by 119,000 units to a total of more than 1.32 million vehicles worldwide, an increase of 10 per cent. The group reported an increase of 5.2 per cent in turnover. The BMW plant in Egypt, located in the 6th of October city, is built over an area of 39,000 square metres. According to Farid El-Tobgui, executive board member of BAG, "over $35 million have been invested in the plant. All production equipment is produced, tested and approved through the BMW Group." "Our successful partnership with BMW has led us to invest a further $9 million in the Bavarian Auto Centre in Qattameya, a state-of-the-art flagship outlet and administrative centre." BMW facilities in Egypt currently provide 750 direct, and 1,000 indirect, jobs to Egyptians. In 2005 BAG's turnover was LE381.6 million, up 19 per cent up on the previous year. "We expect double digit growth for 2006, thanks to the private-sector friendly policies adopted by the Egyptian government and the positive business environment this has created," said El-Tobgui. MTN bid MTN GROUP, the leading communication services provider in Africa, is currently exploring the possibility of bidding for the third mobile licence in Egypt, according to Phuthuma Nhleko, MTN Group chief executive officer. MTN also told its shareholders it will participate in the privatisation process of Tunisia Telecom. The MTN Group has operated in several African countries, including Cameroon, Nigeria, South Africa and Uganda. It is currently preparing to launch commercially in the Middle East, where it secured a 49 per cent stake in IranCell, which was granted the second GSM licence in Iran, according to Santie Botha, executive marketing director. Since 1994 MTN has invested $4 billion in infrastructure development in Africa.
