Mobile network Orange has announced a new agreement to purchase Millicom’s operations in the Democratic Republic of Congo for $160 million. The group is based in France and already operates in the Congo. They said in a statement that the business is a ‘perfect fit’ given the current operations in the country that the network has.
Millicom is already a successful company who is forecast to have almost 6.5 million connections in the country by the end of the first quarter of 2016. This is ahead of Orange’s prediction of 5.9 million. The move between the two companies has also been predicted to ‘crank up’ the pressure between other networks in the market. Currently Vodacom is the leader with 12.8 million subscribers, followed by Airtel with 12.5 million and lastly Africacell with 9.5 million.
Millicom, who operate across Africa and Latin America, said that the sale lines up with its company strategy of concentrating on markets which are seen to be promising. A spokesperson for the company said that proceeds from the sale will ‘strengthen our balance sheet’, allowing them to reinvest in the current markets that they operate in and improve earnings.
For Orange, this new deal comes just weeks after a deal was made with Airtel to buy its operations in Sierra Leone and Burkina Faso. The deal with Millicom is still subject to approval from regulators.
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