MTN Group Ltd., Africa’s largest mobile-phone company, said on Wednesday that it is in negotiations to buy all or part of Cairo-based competitor Orascom Telecom Holdings SAE.
The talks with Orascom parent Weather Investments SpA may lead to the purchase of the Egyptian company or certain of its businesses, Johannesburg-based MTN said today in a statement to the city’s stock exchange.
Orascom also confirmed that negotiations are taking place in a release to the Cairo bourse. The Egyptian mobile operator said its parent company, Weather Investments SpA, is in talks with South Africa-based MTN Group.
The discussions may lead to the acquisition of Orascom or its businesses by MTN, it said.
"A further announcement will be issued in due course as required, " Orascom said, adding that it has asked the Egyptian Exchange to restore trading on its stock. Orascom's shares were suspended Monday pending a material announcement.
Orascom operates in North Korea, Bangladesh, Pakistan, Egypt, Algeria, Tunisia, the Central African Republic, Burundi, Namibia and Zimbabwe.