Orascom Telecom Holding (a): Wind and Weather

Abstract

Naguib Sawiris, CEO of Egyptian Orascom Telecom Holding (OTH), continuously scoured the globe for opportunities to expand his telecommunications empire. In 2005, Naguib looked across the Mediterranean Sea and announced his intention to acquire Italian telecom operator Wind Telecomunicazioni S.p.A. (Wind), one of Italy's leading telecommunication providers in the largest leveraged buyout in European business history.

Excerpt

UVA-S-0234

Rev. Nov. 7, 2014

ORASCOM TELECOM HOLDING (A): WIND AND WEATHER

Naguib Sawiris had never been afraid of risks. From his office on the 26th floor of one of Cairo's twin Nile City Towers, Naguib continuously scoured the globe for opportunities to expand his telecommunications empire. He found new targets in regions other companies were afraid to enter, sometimes in some of the most dangerous places on earth such as Iraq and Pakistan. CEO of Egyptian Orascom Telecom Holding (OTH), Naguib was born into Egypt's richest family dynasty. A Coptic Christian, he was open about his faith:

The reason I'm not afraid to take risks is that I have two things that help. I have a very strong belief that God is on my side, and I do a lot of good in my life. I think this helps my relations with God. My belief is very strong and if you believe in Him, He will not let you down.

With God on his side, and an incorporated Luxembourg-based investment vehicle, he felt confident enough to pull together what was to become the largest leveraged buyout in European business history: the acquisition of Italian telecom operator Wind Telecomunicazioni S.p.A.

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Keywords: cross-border investments, telecom operators, LBOs, fixed-line carriers, network related costs, global telecommunications