France-based Orange Group has announced it has completed the acquisition of 100% of Millicom International Cellular’s (MIC’s) Tigo subsidiary in the Democratic Republic of Congo (DRC). Bruno Mettling, Deputy CEO of Orange in charge of Operations in Africa and the Middle East, commented: ‘We are extremely happy to announce the completion of the acquisition of Tigo by Orange DRC in a market marked by very strong growth potential. Through this strategic investment, Orange confirms its ambition to reinforce its presence in the DRC and accelerate the conditions in which it can develop its services through this consolidation.’
As previously reported by TeleGeography’s CommsUpdate, in February 2016 MIC stated it would sell 100% of its Tigo DRC shares for a total cash consideration of USD160 million, with MIC CEO Mauricios Ramos saying at the time: ‘The sale of Tigo DRC is in line with our strategy of supporting consolidation and concentrating our resources in our most promising markets. Proceeds from the sale will strengthen our balance sheet allowing us to reinvest in our existing Latin American and African markets, improving earnings and cash flow and reducing leverage.’
TeleGeography’s GlobalComms Database notes that as at 31 December 2015, Tigo DRC was the country’s fourth largest operator by subscribers with a 12.9% share of the market, while Orange DRC sat just behind with a 12.8% market share. Both cellcos operate 2G and 3G networks.