Orascom Telecom, the largest telecommunications operator in the Arab world, has completed the sale of its Tunisian unit to Qatar Telecom (Qtel).
Qtel agreed to purchase Orascom's 50 per cent holding in Orascom Telecom Tunisie, also known as Tunisiana, for US$1.2 billion (Dh4.4bn) in November, with the Egyptian operator looking to shed assets before one of the largest telecoms mergers in recent years.
Tunisiana was previously 50 per cent owned by Wataniya Telecom, a subsidiary of Qtel based in Kuwait. It will now gain full ownership of the company.
The sale represents an annual return of 40 per cent on Orascom's original investment in the business in 2003.
The proceeds from the sale would be used to "strengthen Orascom Telecom's liquidity position and support the development of higher-growth businesses", the seller said.
Orascom is in discussions with VimpelCom, a Russian telecoms operator, to merge assets in a $6.5bn transaction that would create the fifth-largest operator in the world.
However, the merger has stalled on concerns from Telenor, a major shareholder in VimpelCom, over the state of Orascom's Algerian unit, Djezzy.
Djezzy is considered one of the crown jewels in the VimpelCom-Orascom merger, but it is tied up in a legal battle between the Algerian government, which wants to nationalise the company, and Naguib Sawiris, the chairman of Orascom Telecom.
Mr Sawiris said recently that he would pursue international arbitration with the World Bank to settle the dispute.
Mr Sawiris wants to sell Djezzy for more than the $7.8bn the unit was valued at in 2008 when the South African operator MTN made an unsuccessful attempt to buy it. But Algeria values it at $3.5bn.
Meanwhile, Qtel is looking to further expand its operations internationally. The operator already generates more than 75 per cent of its revenue overseas and is one of five companies left in the bidding for Syria's third mobile licence.
Qtel is also reportedly looking to raise its stake in Liberty Telecoms, an operator based in the Philippines. Qtel holds a 27 per cent stake in Liberty. The rest is owned by various Philippine companies.
dgeorgecosh@thenational.ae