Mobinil Announces Acquisition of LINKdotNET Creating A New and Exciting Integrated Telecommunications Company

Mobinil Announces Acquisition of LINKdotNET Creating A New and Exciting Integrated Telecommunications Company

Released on - Monday,05 July , 2010 -11:40 00

The Egyptian Company for Mobile Services (Mobinil) has announced its acquisition of LINKdotNET, the leading private-sector Egyptian internet service provider, from InTouch Communications S.A.E., a subsidiary of Orascom Telecom Holding (OTH), in a landmark deal which will improve customers’ access to a wide array of integrated communications services, will create high value for shareholders, and will benefit Egypt’s telecom sector and the country’s overall economy.

At a press conference on 4 July 2010, headed by representatives from Mobinil and LINKdotNET, Mobinil announced the signing of a share sale and purchase agreement with InTouch Communications, a wholly owned subsidiary of OTH for the purchase of 100% of LINKdotNET and Link Egypt (LINK). The enterprise value is USD 130 million.

Hassan Kabbani, Mobinil CEO said: “This acquisition is a new and stimulating milestone in Mobinil’s success story in Egypt’s telecommunication sector, as it will develop a unified strategy for the already existing relationships and cooperation between Mobinil and LINKdotNET, thus creating a dynamic mechanism for converging mobile services with internet services in a way that provides higher value for the customers of the two companies”.

“Combining the knowledge and resources of two of the strongest and most recognizable Egyptian companies, the new entity will be able to compete more effectively in the market. It will also operate more efficiently by activating synergies and improved economies of scale. This reinforces Mobinil’s strategy of focusing on growing non-voice and value-added service revenues, containing cost evolution and protecting and growing our subscriber base”, Hassan added.

Karim Beshara, CEO of LINKdotNET, said: “LINKdotNET, the leading privately owned internet service provider, will benefit from the opportunity to further enhance its position as a leader in product innovation and customer service. Most importantly, Mobinil and LINK will be better positioned to accelerate investment in new technologies and new services, and more agile in taking up new market opportunities”.

“All existing contracts and commitments to suppliers, resellers and distributors will be honored, and LINK customers will continue to benefit from its superior offerings while further future integration will be offered”, Karim Beshara added.

The sale excludes the non-ISP part of LINK Business and affects LINKdotNET’s Egyptian operations only, while the other non-connectivity business would remain owned by Orascom Telecom Holding (LINK Development, LINKonLINE, Connect Ads, Arab Finance Brokerage Company and Arpu+).

Customers of Mobinil and LINK will benefit from an improved access to a wide array of communications services including a one-stop-shopping experience for both mobile and fixed broadband services, a wider distribution network which improves the availability of products and services, the highest level of customer service and increased convenience for service delivery and bill payment. Business clients, on the other hand, will benefit from enhanced services and product offerings.

Shareholders will benefit from a stronger financial foundation and the expected synergies between the two companies.

More than 5000 employees of Mobinil and LINK combined will benefit from enhanced long term career opportunities, greater stability, more security, as well increased opportunities for professional growth and development as part of a larger and more agile organization.

Most importantly, the Egyptian market and economy will benefit from the emergence of a stronger and more profitable entity focusing on growth, innovation and development.

About Mobinil

Since its inception in May 1998, Mobinil has strived to maintain its position as the leading Mobile service operator in Egypt. Honoring the trust of more than 26 million subscribers, Mobinil is committed to being the leading mobile service provider in Egypt, providing the best quality service for our customers, the best working environment for our employees, top value for our shareholders, and proudly contributing to the development of the community