OTMT’s Med Cable Sold To Orascom Telecom At €12.3 Mln

Orascom Telecom Media and Technology Holding (OTMT.CA) announced on Sunday the completion of the negotiations with Orascom Telecom Holding (Global Telecom) (OTH) (ORTE.CA) to sell its entire stake in Med Cable, its fully owned subsidiary.

OTMT added in a filling released Sunday that the two companies agreed the transfer by OTMT to OTH of Med Cable would come into effect at an enterprise value of Euro 12.3 million.

It is worth noting that Karim Beshara, the CEO of OTMT,  had made an exclusive statement to Amwal Al Ghad on November 7th announcing that the company is planning to sell Med Cable in Algeria amid more than one year of suspension. He also said OTMT is currently seeking to market Med Cable noting that there are a number of offers to purchase and invest in the cable are under study.

Beshara further told Amwal Al Ghad that suspending operations in Med Cable was due to disputes between OTMT and the Algerian government.

The Algerian government had announced immediately after suspending the operations in Med Cable that OTMT is using the cable for leaking the customers’ information. The CEO of OTMT added that the company cannot reap the benefits from the cable since halting its operations in Algeria. He said the continuous replacement, renewal and maintenance of the Med Cable lower its market value.