Orascom Telecom Holding (OTH) has completed sale of its internet services arm LINKdotNET and Link Egypt (“LINK”) to the mobile network operator, Mobinil, said a statement issued by Orascom Telecom.
Orascom had announced in February 2009 about the sale of group’s ISP part of Link Egypt’s business. This transaction will affect LINKdotNET’s Egyptian operations only.
The other non-connectivity business, LINK Development, LINKonLINE, Connect Ads, Arab Finance Brokerage Company and Arpu+ will remain owned by OTH.
The deal is a cash transaction based on an enterprise value of US$130 million. The business represents 56% and 90% of the revenue and EBITDA of OTH Internet Services respectively.
The sale is expected to allow Mobinil to extend broadband and corporate communications services to its more than 26 million customers.
Khaled Bichara, Group Chief Executive Officer of OTH, said: “We are delighted to have concluded this deal. As per the trend in the global telecom industry, the convergence between ISP’s and operators clearly enhances the value for both businesses and enriches the value offering to their consumers.”