Orange Uganda and Africell Holdings have signed an agreement, the agreement involves the telco company selling majority of its shares to Africell.
It has has been in the air waves that Orange is looking into exiting a good number of the African markets where it does not hold the number one or two positions. the telco company in currently at number three in Uganda after MTN and Airtel; and it had 620,000 clients by the end of last year.
MTN has around 8.5 million subscribers in Uganda, while post-merger, Airtel has over 7.5 million. The next largest is Uganda Telecom’s UT Mobile unit, with Orange Uganda among the country’s smaller operators
Aside from Uganda, which is thought to be the only geography where an official process is underway, this could also include Orange’s mobile businesses in Kenya, Democratic Republic of Congo and Niger, among others.
The transaction is subject to approval from the relevant authorities. It will enable the company in Uganda to continue its development, Africall is already active in Gambia, DRC and Sierra Leone. No financial details of the takeover were disclosed.