Qatar Telecom (Qtel) has become the majority stakeholder in Tunisiana, the North African telecom unit, after acquiring Orascom Telecom Holding's 50 percent stake in the firm, Qtel announced on Wednesday. The stock was acquired for $1.2 billion said Qtel in a statement. The price is 6.7 Tunisiana's earnings before interest, taxes, depreciation and amortization, Orascom said in a statement to the Cairo bourse. The Tunisiana deal was part of a joint agreement with the Princesse Holding Consortium, led by Sakher El Materi, son-in-law of recently ousted Tunisian President Zine El Abidine Ben Ali. Under the agreement, Princesse Holding will acquire a 25 percent stake in Tunisiana, while National Mobile Telecommunications Company (Wataniya), of which Qtel owns 52.5 percent, will increase its current stake from 50 to 75 percent. The agreement will also make El Materi the new chairman of Tunisiana. “Qtel has consistently and confidently pursued a strategy of actively developing a global portfolio of assets. By further increasing our shareholding in Tunisiana, which has already earned a strong market position, we will be able to ensure that the company advances to the next stage of development, delivering additional products and services for its customers, as well as benefits for all Qtel Group's stakeholders,” said HE Sheikh Abdullah Al Thani, chairman of Qtel. Completion of the deal will make Qtel Group the largest communications group in the Middle East and North Africa, with nine controlled operations and a presence in seventeen countries. Cairo-based Orascom's sale of its 50 percent stake could affect the valuation of its Algerian unit, Djezzy. Orascom is reportedly in negotiations to sell Djezzy to the Algerian government. “Any adviser making the valuation for Djezzy should take into consideration the region's recent deal multiples,” said Ahmed Adel, telecom analyst at Cairo-based Naeem Brokerage. Additionally, Orascom is currently discussing the sale of assets to Russian group VimpelCom. The deal would create the world's fifth largest mobile phone operator. BM
