The operation reflects France Telecom-Orange's international strategy, which aims to stimulate growth by entering high potential emerging markets. Today's announcement will enable the Group to strengthen its position in the Middle East. The mobile penetration rate in Iraq is considerably less than in many neighbouring countries. The development of Korek Telecom, which holds a national mobile licence in a country that is in full economic reconstruction, offers real potential for growth over the next few years.
Stephane Richard, France Telecom-Orange's Chairman and CEO, said: "The acquisition of this stake in Korek Telecom is a new step in our policy of expansion outside Europe, and contributes to our stated aim of doubling our revenues in Africa and the Middle East by 2015. I am delighted to contribute to this strategic partnership, especially at a time when Korek Telecom is expanding its operations across the entire country, thereby offering the latest services and technologies to the whole Iraqi population."
Tarek Sultan, chairman and managing director of Agility said: “Agility has a strong global footprint, especially in the emerging markets. Noting its prospects for future growth and development, we invested in Korek Telecom in 2007. By forming a partnership with France Telecom-Orange and Korek Telecom, we now have the right combination of strategy, expertise and geographic presence to ensure that we realize Korek Telecom’s full potential in the long term. We look forward to Korek Telecom’s expansion in the Iraqi market through our continued support.”
Sirwan Saber Mustafa, Chairman of Korek Telecom, said: "I am very happy with the partnership we have struck with France Telecom-Orange and Agility. Our mission at Korek Telecom is to provide all Iraqis with the best network quality and the most innovative and exciting products at competitive prices. With our network far advanced in its roll-out across Iraq and with the support of our new partners, we can target becoming the network of choice for all Iraqis."
The final closing of the agreement remains conditional on the approval of the Iraqi Communications and Media Commission, and is expected to take place in the next few weeks.
Comments are closed.