Govt com­pletes Tele­cel takeover

Chronicle (Zimbabwe) - - Business - Harare Bureau

GOV­ERN­MENT through ZARNet (Pri­vate) Lim­ited has com­pleted the pre­vi­ously an­nounced ac­qui­si­tion of 100 per­cent share­hold­ing in Tele­cel In­ter­na­tional Lim­ited from Global Tele­com Hold­ings SAE for $40 mil­lion, the Min­istry of ICT, Postal and Courier Ser­vices said yes­ter­day.

TIL owns 60 per­cent share­hold­ing in Tele­cel Zim­babwe (Pri­vate) Lim­ited with the Em­pow­er­ment Cor­po­ra­tion con­trol­ling the re­main­ing 40 per­cent.

Vim­pelCom, a lead­ing global provider of telecom­mu­ni­ca­tions and dig­i­tal ser­vices head-quar­tered in Am­s­ter­dam and serv­ing over 200 mil­lion cus­tomers, also con­firmed the de­vel­op­ments in a state­ment yes­ter­day.

The Min­is­ter of ICT, Postal and Courier Ser­vices, Supa Mandi­wanzira said $21 mil­lion has been trans­ferred by ZARNet to GTN out­side Zim­babwe, and the balance of $19 mil­lion will be paid as de­ferred con­sid­er­a­tion.

ZARNet is wholly owned by Gov­ern­ment through the Min­istry of ICT, Postal and Courier Ser­vices.

“As a re­sult of the trans­ac­tion com­ple­tion, the Gov­ern­ment of Zim­babwe through ZARNet (Pri­vate) Lim­ited takes ef­fec­tive man­age­ment con­trol of Tele­cel Zim­babwe,” said Min­is­ter Mandi­wanzira.

“The com­ple­tion se­cures the fu­ture of Tele­cel Zim­babwe as an op­er­a­tion and the Min­is­ter of ICT, Postal and Courier Ser­vices would like to as­sure all em­ploy­ees, cus­tomers, sup­pli­ers and other stake­hold­ers that the fu­ture is or­ange; it is bright.”

He re­it­er­ated that Gov­ern­ment’s in­ten­tions re­main to se­cure 100 per­cent share­hold­ing in Tele­cel Zim­babwe, in the process “sani­tis­ing” the nu­mer­ous share­holder re­lated dis­putes that have dogged business growth and scared away in­vestors.

The re­main­ing 40 per­cent is owned by the Em­pow­er­ment Cor­po­ra­tion which has in turn mort­gaged 15 per­cent as part of a loan agree­ment with Brain­works Cap­i­tal.

“The Min­is­ter of ICT, Postal and Courier Ser­vices would like to thank His Ex­cel­lency Pres­i­dent Mu­gabe for his ex­cel­lent guid­ance in clos­ing the trans­ac­tion; the Cab­i­net for its clar­ity and direc­tion on the mat­ter and ZARNet’s fi­nanciers.”

Min­is­ter Mandi­wanzira has in the past hinted that it will seek to en­ter into a man­age­ment con­tract with an in­ter­na­tional firm once the ac­qui­si­tion is com­pleted. He has also said after two years, Gov­ern­ment would seek to sell the stake or list it on the stock ex­change.

Gov­ern­ment in­tends to se­cure 100 per­cent share­hold­ing in Tele­cel Zim­babwe to deal with share­holder is­sues that have been scar­ing away in­vestors

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