MTN Joins BICS Alliance

Belgacom International Carrier Services and MTN extend strategic cooperation by combining their international carrier services

June 29, 2009

1 Min Read

JOHANNESBURG and BRUSSELS -- Belgacom ICS (BICS) and MTN announce a next step in their strategic co-operationby combining their international carrier services, resulting in MTN holding an equitystake in BICS. The current shareholders of BICS, Belgacom and Swisscom, aretherefore pleased to see MTN become a new shareholder.

In terms of this transaction, MTN will contribute into BICS the assets of MTN ICS, itsinternational wholesale subsidiary, which generated revenues of €223 million for theyear ending 31 Dec 2008. In addition, MTN will mandate BICS to operate as theofficial international gateway for carrier services of MTN globally.

The completion of this transaction is expected to take place during the fourth quarterof 2009, subject to, inter-alia, the approval of the relevant government, regulatoryand competition authorities and the completion of certain statutory formalities. It isenvisaged that the MTN ICS operations will be progressively integrated. Postimplementation of the transaction, Belgacom will own 57.6% of BICS, Swisscom 22.4%and MTN 20.0% with the right to appoint two directors to the board.

The combination of the international carrier services of BICS and MTN ICS is expectedto improve efficiencies and product offerings resulting from greater economies ofscale. In addition to the anticipated efficiencies, the transaction is expected topositively impact the future growth of the larger combined entity which will becomethe leading international wholesale operator in Africa.

Sifiso Dabengwa, Group Chief Operating Officer of MTN commented: “Thistransaction is a natural next step following our successful strategic co-operation withBelgacom ICS since 2005. By combining our international carrier services activities, weseek to further improve the quality of the international service offering of ouroperations in Africa and the Middle East, while realising meaningful cost benefits.”

MTN Group Ltd.

Belgacom SA (Euronext: BELG)

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