Research archive for MTN

The MTN slash Orascom talks that could, or could not lead to a transaction is hotting up. The Algerian government is quitting on any deal already. The Reuters article Q&A-Orascom's Algerian troubles points out Algeria and Egypt were involved in a diplomatic row that erupted after minor violence during soccer World Cup qualifying matches last year between the Arab rivals.

The MTN announcement produced very little. Well from a clarity point of view. There are some views out there on what parts of the business really are for sale, it would be great if the company could get in the front door in Pakistan and Bangladesh, two huge populations. But that is unlikely according to most. The jewel in the crown as this fellow points out is Djezzy in Algeria, take a read MTN-Orascom: What exactly is for sale? Oh, and MTN will release subscriber numbers today, around midday. Oh, and news just out the Algerians say that they will oppose an MTN/Orascom deal.

No time for Freedom day at Bloomberg, Vernon Wessels and two others working on the story yesterday, MTN and Orascom and speaking as ever to "sources close to the deal". And "people familiar with the deal", the biggest leaky ships in any deal, folks who just can't keep secrets. So the announcement that we eagerly await would probably talk about specific assets in the Orascom stable. Good thing we are not that good at football anymore, some of the core disputes between Algeria and Egypt are around "that" match where Algeria qualified ahead of Egypt for the looming World Cup here. Not the first time that the two have fought over football. Egypt recalled their ambassador to Algeria, Egypt extracted their revenge by trouncing Algeria in the African cup of nations.

Lots of news coming through regarding MTN. Nobody is quite sure whether or not they are actually talking to Orascom, but Orascom GDR's in London were suspended, so put one and one together. Here is the WSJ piece where Paul is quoted, fame at last MTN Is in Talks to Buy Assets From Orascom. Cool.

The FT is reporting that MTN is in talks with Orascom to buy their African assets. Oh darn, I was hoping the whole lot, because Orascom of course operates a network in North Korea. Yip. And that would bring MTN closer to operating across the entire George W Bush Axis of Evil. Believe it or not, but I looked at the Orascom financial release for the end of the last financial year and see that North Korean subscribers have ARPU's of 40 Dollars. Only 100 thousand odd users, Kim Jong-il and his closest potential adversaries mates.

Is this big news? Well, for MTN's sake I hope so. Just as a friend of mine had joined Telkom mobile, he sent an email advising, this MTN SENS announcement spelled out the following:

Did you see our MTN video? Simply - Vestact on MTN. We released that last week, following their results from 10 days prior to that. If you have not seen it yet, check it out and let us know what you think? Our best work yet.

MTN mashed. Whoa. MTN took some serious tap yesterday. The official line will be that Bharti and Zain have all but concluded their deal. And of course now Bharti will be competing head on with MTN in Nigeria. 6 months is a lot in the world of telecommunications nowadays. I have a different take on it, you know that MTN have moved aggressively into Africa and paid outrageous prices ten years ago. These have turned out to be amazing and very smart licence purchases now. The African population is going to double in the next forty years. And if the continents economy grows comfortably ahead of the developed world from a low base, that still makes the place very attractive.

MTN reaction to their results yesterday were what you would expect. I guess. But this is the one point that I wanted to get across. The Nigerian Naira weakened from about 118 Naira to the US Dollar to 150 last year. Decreased around 30 percent during the year. The Rand to the US Dollar firmed over thirty percent last year.

MTN results for their full year to December. Right where analysts expected the results to be, 754 cents per share worth of earnings. On an adjusted basis, excluding the impact of functional currency losses, as it is put in the results: up 8,5% to 878,9 cents. All very nice to tell someone what it would have been, if there had not been, I shall go with the headline number thanks. Bear in mind that this is a Quality Street of Vestact, we like it a lot. Dividend of 192 cents per share.