Dubai-based Abraaj Group has announced it has entered into a definitive agreement to purchase a significant minority stake in Société Nationale des Télécommunications (Tunisie Telecom), Tunisia’s largest telecom operator.
The stake will be acquired from Emirates International Telecommunications, the investment firm said in a statement.
Upon completion, this will represent the largest ever private equity investment in Tunisia, it added.
Tunisie Telecom is the incumbent integrated telecom services operator in Tunisia and serves over five million customers and also holds assets in Malta, Cyprus and Mauritania.
Tunisia enjoys a 132 percent mobile penetration rate and is witnessing growing demand for mobile data and fixed broadband, Abraaj said.
Abraaj added that in partnership with the management team of Tunisie Telecom and the Government of Tunisia, it has developed a robust value creation strategy to grow the company as a pan-Mediterranean telecom leader.
Ahmed Badreldin, head of Middle East & North Africa at The Abraaj Group, said: “This is a landmark transaction for Abraaj, as it marks our first investment into the telecommunications sector, as well as our 10th investment in Tunisia. The telecommunications industry in Tunisia is experiencing exponential growth driven by favourable government policies and a rapidly evolving economy.”
Abraaj said it is one of the leading private investors in Tunisia with 10 investments in the country, including the North Africa Hospital Holdings Group.
The transaction will close once customary closing conditions including government approvals are obtained.