Orascom Telecom completes the sale of its remaining 14.2% stake in Hutchison Telecom International to Hutchison Whampoa for $960M

December 6, 2007

1 Min Read

CAIRO, Egypt -- Orascom Telecom Holding S.A.E. (“OTH”) hasreached an agreement to sell its remaining shareholding in HutchisonTelecommunications International Ltd (“HTIL”), representing approximately14.2% of HTIL’s outstanding share capital, at a price of HK$11 per share. Theshares are being sold to Hutchison Whampoa Limited (“HWL”) and Yuda Limited(“Yuda”), an entity owned and controlled by Mr. Li Ka-shing. HWL will acquire441 million shares and Yuda will acquire 239 million shares, representingapproximately 9.2% and 5% of HTIL’s share capital, respectively. Total proceedsfrom the sale are HK$ 7.5 bn (US$ 960 million).

On December 21st, 2005, OTH acquired a 19.3% interest in HTIL from HWL for atotal purchase price of US$1.3 billion or the equivalent of HK$11 per HTIL share.On July 2nd, 2007, OTH has received a special cash dividend of US$ 793 millionwhich was distributed from the proceeds of HTIL’s divestment of its Indiansubsidiary, Hutch Essar. On October 26th and November 13th OTH announcedthe sale of a 5% stake in HTIL at HK$10.70 per share for US$ 327 million.

Overall OTH generated approximately US$600 million of cash profit (afterinterest charges) in a transaction which was 100% debt financed.Upon completion of the transaction with HWL and Yuda, OTH will havecompleted the sale of all HTIL shares it had purchased.

Naguib Sawiris Chairman & CEO of OTH said “This sale proves OrascomTelecom’s ability to achieve high returns for its shareholders. OTH’s initialacquisition of HTIL shares was to gain exposure to the Indian market, however,after the sale of the Indian asset, the investment in HTIL became of less strategicvalue to OTH. With the proceeds of the sale, OTH will evaluate investmentopportunities including acquisitions of new licenses and established operators ofsubstantial size, as well as evaluating opportunistic repurchases of its GDRs inlight of favorable relative market valuations.”

Orascom Telecom

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