HELSINKI, Finland-Sonera Corp. said it sold its 14-percent holding in Lebanese GSM operator LibanCell to Lebanese Telecommunications Co. for $22.5 million. The operator, which is focusing on reducing its high debt, said it will record a gain of about $19.7 million.
LibanCell has been involved in a controversy with the Lebanese government, which last year cancelled the build, operate and transfer contracts of the country’s two mobile operators and announced a new tender process to grant two new GSM licenses. The tender is still under way.
“LibanCell was a good investment for us, but as the Lebanese government cancelled the BOT contract, the company’s prospects became more uncertain,” said Kim Ignatius, Sonera executive vice president and chief financial officer. “Moreoever, the minority holding in LibanCell was no longer in line with out current strategy, which is aimed at immediate profitable growth in selected markets in the East, such as Russia, Azerbaijan, Georgia, Kazakhstan and Moldova.”
Sonera said LibanCell had 381,000 subscribers at the end of 2001 and a market share of 49 percent.
