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05/17/2005 WashingtonD.C., May 17, 2005 -- EMP Global LLC ("EMP") announced today that the Africa focused private equity fund it advises, the AIG African Infrastructure Fund (the "Africa Fund"), has sold its stake in Celtel International, a leading pan African telecommunications provider. Proceeds from the sale will total approximately $214 million, or 4.3x its $50 million investment, demonstrating EMP Global's strength in delivering superior returns to its fund investors. The sale follows the acquisition of Celtel by Kuwaiti mobile operator, Mobile Telecommunications Co ("MTC") for an enterprise value of US$3.36 billion. Celtel operates primarily cellular networks as well as one fixed line network in sub-Saharan Africa. Since the Africa Fund's initial investment in the company in April 2000, Celtel has grown its subscriber base from 44,000 to over 6 million and is currently operating in 13 countries. In 2004, Celtel recorded proportionate revenues of US$714 million and net profits of US$147 million, representing increases of 58% and 101% respectively over the previous year. Over the past few years, Celtel has emerged as a major player in the African telecom sector, providing services that are critical to the continued development of the continent. MTC is a leading Middle Eastern mobile telecommunications provider with subscribers of 3.5 million in Kuwait, Iraq, Jordan, Bahrain and Lebanon. The company is listed on the Kuwaiti Stock Exchange and has a market capitalization of US$7 billion. MTC's acquisition of Celtel is in line with its strategy to expand into other emerging markets including sub-Saharan Africa. Under the terms of the transaction, MTC will purchase 85% of Celtel's equity stake for US$2.8 billion and will commit to purchasing the balance of US$520 million within 24 months from the date of financial close. Tom Gibian, Managing Director of EMP and Chief Operating Officer of the Africa Fund said:
"We are delighted with our investment in Celtel, our first and largest investment in Africa. The Africa Fund can now add to its legacy the achievement of a truly superb exit for its investors in a manner that provides an excellent return on the capital invested. "Over the past five years, Celtel has earned a reputation for sound corporate governance, solid operating performance and robust financial results. As such, it has attracted an important and well regarded telecommunications company, MTC of Kuwait, to the Africa region." The Celtel transaction marks a historic milestone for EMP in Africa. As of March 2005, the Africa Fund has committed $351 million to 15 companies across the continent engaged in a variety of sectors including telecoms, agribusiness, transport, energy, oil and gas, and media. EMP Africa continues to work on achieving successful returns for its investments, and it expects further significant realizations will be achieved in 2005. EMP Africa's objective is to remain a leading player in private equity in Africa. *** About EMP Global LLC EMP Global LLC is the largest private equity fund advisor focused on emerging markets and manager of six private equity funds totaling $5.7 billion invested in Africa, Asia, Latin America, Europe and the Middle East. EMP Global has over ninety professionals based across eight offices in the regions in which it invests. About EMP Africa EMP Africa, an affiliate of EMP Global LLC, comprises the Company's private equity investment activities across the African continent; namely advising or managing funds in excess of $407 million from its offices in Washington, Tunis, Abidjan and Johannesburg. Investor enquiries: Bharat Parashar, Tel: +1.202.331.9051 Email: parasharb@empw.com Media enquiries: Tristan B. Peniston-Bird, Tel: +1.212.515.1933 Montieth M. Illingworth, Tel: +1.212.515.1972
EMP Website: www.empwdc.com |