Saudi Oger signs agreement to sell Zapp Romania

Saudi Oger Ltd. today announced that it has signed a Sale and Purchase Agreement to sell 100% of its subsidiary, Telemobil S.A., (trading under the Zapp brand in Romania), to Cosmote Mobile Telecommunications Group for an enterprise value of Euro 207 million.

This is split approximately Euro 61 million (equity value), while Cosmote will also assume the debt and other liabilities of Zapp, mainly concerning 3G and CDMA network roll out, estimated at approximately Euro 146 million. Completion of the sale is subject to the fulfillment of certain customary conditions precedent for transactions of this type, including approvals from the relevant authorities.

Nadim Akkaoui, Director of Corporate Finance for Saudi Oger, said: "We are pleased to have concluded negotiations with Cosmote Group for the sale of Zapp Romania, and look forward to a successful close. The transaction follows a period of investment in the Company's infrastructure where we expanded our coverage and rolled-out new services in partnership with China Development Bank and ZTE Corporation. Zapp Romania has made important strides in rolling out its 3G and EV-DO network, and now covers over 70% of Romania's population with its high-speed mobile broadband service. The combination of Cosmote's Romanian franchise and Zapp's premier high-speed data network will be beneficial for both companies and their customers. "

Zapp Romania is one of the most successful CDMA operators in Europe, with a growing mobile internet subscriber base. The Company was awarded Romania's 4th 3G License in 2007. The Romanian telecom market has amongst the fastest growing mobile internet segments in the CEE region.

BNP Paribas Fortis, London, is acting as exclusive financial advisor to Saudi Oger and Norton Rose LLC, London, as legal advisors.

For Further information please contact
Zapp Romania

  • Carmen Lazar - Director of Communications
  • + 4 031 57 90 101/031 57 90 320

BNP Paribas Fortis, London:

  • Dean Byrne / Kevin Buck / Amit Vithlani
  • +44 (0) 20 3296 8733

About Saudi Oger

Saudi Oger is one of the leading construction companies in the Middle East with its headquarters in Riyadh, Kingdom of Saudi Arabia. Saudi Oger is a private company, wholly owned by the Hariri family. Since its inception, Saudi Oger has grown into a multi-company, multi-divisional organization with subsidiaries and affiliates in the Kingdom of Saudi Arabia and abroad. The company leads the construction sector in the region based on its superior technical expertise gained from overseas subsidiaries and the regional knowledge gained from several decades of hands-on experience. In addition to the construction industry, Saudi Oger's lines of business cover Operation & Maintenance, Real Estate Development, Printing, Telecommunication, Utilities and IT services.

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