The Orange Group has today announced that it has signed an agreement for the sale of its stake in Orange Uganda.
The Orange Group is the majority shareholder in Orange Uganda, and had indicated it wanted to sell part of its shareholding in the company at the beginning of 2014.
In a press statement, Orange Group confirmed that it “has signed an agreement with Africell Holding for the sale of its majority stake in Orange Uganda.”
Orange is the third largest telecom in Uganda with about 625,000 subscribers as of December 2013. Since operations started, the company has also not turned a profit. In fact between 2008 and 2010, cumulatively, losses totaled 142 billion Uganda Shillings.
The company has struggled to keep up the pace in the voice segment of the market, which Airtel and MTN continue to dominate. It began operations in Uganda in 2008 when it acquired Hits Telecom.
Details of the transaction have not been revealed as regulators approve the sale. If completed, this will be the second acquisition of a telecom company in Uganda in just 18 months. In 2013, Airtel acquired Warid Telecom for 500 million United States Dollars.
Africell Holdings, which is buying Orange Uganda, has operations in Gambia, Sierra Leone and DRC. According to the company website, it has 7 million subscribers in all those markets combined.