CAIRO, 31 May 2005 — Egyptian billionaire Naguib Sawiris and founder of Orascom Telecom (OT), the fastest-growing emerging-market cell phone company in the world, has agreed to pay 3 billion euros to take control of Wind, Italy’s third-largest mobile operator.
With 62.75 percent stake in Wind, Sawiris, who leads the consortium Weather Investment that also includes equity entrepreneurs American Wilbur Ross and French investor Philipe Nguyen, will have 12.6 million mobile subscribers and 2.3 million fixed line-customers in Europe. OT already has mobile-phone services in nine countries including Iraq and Algeria.
The total transaction of Wind, a subsidiary of the state-owned Italian utility Enel, is expected by Enel to hit 12.1 billion euros, the largest buyout ever in Europe. According to the agreement signed by Enel and Weather, Enel will transfer 62.75 percent of Wind to Weather in the by the end of June 2005 and Sawiris will contribute a stake of 50 percent plus one share in (OT).
Enel said in a statement that after the first transaction happens, it can transfer the remaining stake in Wind for 328 million euros and shares in Weather that will bring its total equity holding in Weather up to 26 percent.
Paolo Scaroni, CEO of Enel commented: “With the sale of Wind we have completed the disposal of all businesses unrelated to our core activities in electricity and gas, in accordance with the strategy announced three years ago. The exit of the telecommunications business from the group’s activities will enable Enel to focus its growth on energy in Italy and abroad.”