Orange Congo DRC

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In June 2000 the government of the Democratic Republic of Congo (DRC) awarded a 30-year build-own-operate-and-transfer (BOOT) nationwide GSM 1800 mobile telephony license to mixed company Congo China Telecom (CCT). CCT planned to invest some $20 million in network development. The contract was awarded through direct negotiations between the DRC government and Zhongxing Telecom (ZTE), a Chinese government controlled telecom company listed on the Shenzhen stock exchange. ZTE held a controlling 51% stake in special purpose company Congo China Telecom. The remaining 49% of the shares were held by the Ministry of Post and Telecom of the Democratic Republic of Congo. The project reached financial closure on December 14th 2000, with a loan from the Export and Import Bank of China. On October 20th, 2011, France Telecom announced that it was buying 100% of Congo Chine Telecom. Under the terms, France Telecom will pay US$10 million for ZTE's 51% stake, and US$ 7 million for the government's 49% part of CCT. France telecom was to operate under the Orange brand. France Telecom reported that the combination of both transactions was consistent with an enterprise value of $196 million for CCT, or 2.1 times the expected 2011 revenues. CCT was also to pay $71 million to the government of DRC for improved licence terms, consisting of a 10-year extension, access to an additional 2 MHz in the 1,800 MHz range for 2G services, and access to 10 MHz in the 2,100 MHz range for 3G services. CCT’s operations were to be financed from internally generated funds, restructured external loans and a total of $185 million as capital increase provided by France Telecom in several installments. Capex 2012 based on France Telecom Orange FY12 financial results: parent capex * subscribers Orange country subsidiary / subscribers of total France Telecom (231m)