Shacolas confirms talks with MTN

With regard to Wednesday 10 October 2007 publication by Financial Mirror which states that “MTN Cyprus has become the subject of a take over bid by the N. K. Shacolas Group”, N. K. Shacolas (Holdings) Ltd wish to announce that they are in joint venture discussions with MTN Group Ltd in respect of MTN Cyprus.

In the event that an agreement is reached, there is a prospect of Cyprus Trading Corporation Plc acquiring a portion of any equity acquired by N. K. Shacolas (Holdings) Ltd in MTN Cyprus.

The matter is in progress and there will be a further announcement when appropriate.

On Wednesday, the Market Talk column of the Financial Mirror published the following story, which triggered the official NK Shacolas announcement:

 

Telecom takeover?

The paint on the name change of Areeba to MTN to Y’ello has not yet dried and we hear from very reliable sources that the fast expanding MTN Cyprus has become the subject of a takeover bid by the NK Shacolas Group.

Our sources confirm that Shacolas is involved in negotiations to either acquire a significant stake or total control of MTN Cyprus, a development which if successful would change the prospects of the juicy and lucrative mobile telephony market in Cyprus.

Such a takeover would also be a significant threat to CyTA which over the years has thrown every dirty trick it could come up at Areeba, now MTN, and most of times got away with it in terms of slowing down the alternative provider’s penetration into the Cyprus market.

With PrimeTel and OTEnet (in which Shacolas also has a stake) fast winning market share from CyTA in the DSL market, the state-owned telecom is in fast retreat and if Shacolas comes on board MTN Cyprus, then the retreat will become even faster.