Orange Group has today announced that that it has signed an agreement with Africell Holding for the sale of its majority stake in Orange Uganda.
The transaction is subject to approval from the relevant authorities. It will enable the company in Uganda to continue its development.
This transaction marks a new step in the Orange Group’s asset portfolio optimization strategy for which Africa and the Middle-East remain a strategic priority.
Orange Uganda, which was created in 2008, is the third telecoms operator in Uganda and had 620,000 clients at the end of December 2013.
“Uganda with a population of over 37 million and a penetration rate of 50% was well within the criteria we had set to further expand in Africa targeting high potential and high growth markets” says Ziad Dalloul, Chairman and C.E.O of the Africell Group.
Africell would still be looking to add one more market to its portfolio before end 2015 to further expand and diversify its portfolio to cover West, Central, and East Africa.
Africell holds a dominant leading market share in Gambia and Sierra Leone and was able to achieve a 20% market share in the DRC in less than two years of operations facing well established operators. The group currently has over 9 million active subscribers and forecasted to reach 11 million by year’s end.
“We are confident in achieving a quick turnaround of the operation in Uganda; our operating model has proven that we would be able to offer an attractive proposition to the Ugandan consumer allowing us to quickly climb the market share ladder and bring the operation into profitability” adds Elias Arwadi, Chief Operations Officer of the Africell Group.