E&, Orange Said to Weigh Bids For 45% Stake in Ethio Telecom

Emirates Telecommunications Group Co., known as e&, and France’s Orange SA are exploring bids for a 45% stake in Ethiopia’s state-controlled telecom operator, people with knowledge of the matter said.

(Bloomberg) — Emirates Telecommunications Group Co., known as e&, and France’s Orange SA are exploring bids for a 45% stake in Ethiopia’s state-controlled telecom operator, people with knowledge of the matter said. 

E& and Orange have been separately speaking with advisers to weigh offers for the holding in Ethio, the people said, asking not to be identified as the information is private. Deliberations are at an early stage and the Ethiopian government hasn’t announced a timetable for the sale, they said.

The African country has been exploring selling a stake in Ethio, on and off, for the past few years, though an initial process was disrupted by a civil war between the government and leaders of the dissident Tigray People’s Liberation Front. After a peace accord late last year, the government revived the process. 

Ethiopia is also exploring offering a license for a third mobile operator in the country, competing with Ethio and Safaricom Ltd., according to the people. E& is also interested in potentially bidding for that, they said. Companies are required to express their interest by Sept. 15, the people said.

“We are looking closely at Ethio Telecom in particular to see under what conditions the Ethiopian authorities might allow a partner to take a stake in the operator,” a spokesperson for Orange said. 

A spokesperson for e& declined to comment, while representatives for the Ethiopian Communications Authority and Ethiopian Investment Holdings didn’t respond to requests for comment.

Ethiopia is Africa’s second-most populous country with more than 110 million people and is one of the largest remaining telecommunications markets that could offer a new license for mobile operators. Africa, with a fast-growing, young population and relatively low levels of wireless penetration, represents an attractive growth market for service providers. 

E& has also explored a potential investment in Vodafone Group Plc’s African business, Bloomberg News reported last year, while Orange said it plans to boost growth of its Africa business in its 2030 strategic plan.

–With assistance from Archana Narayanan and Fasika Tadesse.

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