UAE’s Etisalat close to $450 million telecom deal in Armenia

Middle East North Africa Financial Network, Jordan
June 24 2006

MENAFN – 24/06/2006 — (MENAFN) UAE’s telecom giant Etisalat has
moved a step closer to acquiring 90 percent of ArmenTel, the largest
Armenian operator of cellular and fixed-line telephony, by getting
short-listed yesterday for the final bidding round along with three
consortia, Khaleej Times reported.

Greek telecom provider OTE, which owns 90 percent of ArmenTel, said a
consortium led by Etisalat is among the four bidders short-listed from
the original eight bidders, including major Russian telecommunication
conglomerates, Mobile Telesystems and Vympelkom.

The fourth bidder is a consortium comprising VTEL Holding and
Knightbridge Associates.

The Etisalat-led consortium includes Dubai investment house Istithmar
PJSC and Emergent Telecom Ventures.

When OTE announced its intention to sell 90 percent of ArmenTel
shares in early April 2006, primary offers came from Russia’s Sistema,
Vympelkom, and Rostelekom, Kuwait’s MTS Kuwait, Armenia’s Sil group,
Belgium’s Belgacom, Hungary’s PanTel, and Etisalat.

ArmenTel provides service to 595,000 fixed telephone subscribers in
Armenia and controls over a half of cellular communication market,
serving more than 50,000 subscribers. Armenian government owns 10
percent of Armentel. The company’s turnover reached Eur 110 million
in 2005.

According to sources close to OTE, the outcome of the tender would
be known after July 20.