Algerian government rejecting the proposed purchase of Djezzy by MTN |
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INTERNATIONAL. MTN is often lauded as Africa's leading homegrown operator with a proven track record in the challenging mobile environment and the ability to make the most of calculated risks.
Its purchase of Investcom in 2007 catapulted the company to the status of more than just a regional operator - with the transaction resulting in presence in nine new markets at once.
The success of the company is globally recognised and this is in evidence through the approaches of Reliance and Bharti regarding acquisition and merger discussions. While the various attempts to complete a transaction were unsuccessful, there were certainly no ill effects for MTN.
However, the news that the Algerian government has rejected the proposed purchase of Djezzy by MTN is perhaps not a surprise and shareholders seem in favour of the news and perhaps the premise that it would be better for MTN to play it safe.
The question is now for MTN to decide whether or not the other assets of Orascom are attractive enough to pursue the deal. If the answer to this question is negative, then one might wonder whether the Group will see fit to look at individual operators rather than a Group approach. This, as the number of Pan-African telecom groups operating in markets where MTN is not already present, diminishes.


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