Global Telecom confirms sale of Telecel Zimbabwe

News Wireless Zimbabwe 18 NOV 2015
Global Telecom confirms sale of Telecel Zimbabwe
VimpelCom announced that its 51.9 percent owned subsidiary Global Telecom has agreed to sell its stake in Telecel International to Zimbabwean ISP Zarnet for USD 40 million. Telecel International owns 60 percent of Telecel Zimbabwe. In a statement, VimpelCom said transfer of ownership to Zarnet will occur after customary conditions are satisfied. Zarnet is wholly owned by the Zimbabwean government through the ICT ministry. Telecel, which is Zimbabwe's smallest operator, saw its licence cancelled in April by regulator Potraz for a breach of regulation, but operations have since been temporarily restored after a court battle. At the time, Vimpelcom also offered to cede control of the company during negotiations with the regulator by offering 11 percent of its shares to employees, thus reducing foreign ownership to 49 percent. Vimpelcom first revealed it wanted to exit Zimbabwe in 2012 as part of wider plans to sell its emerging market units.

Categories:

Mobile

Companies:

Telecel,  Vimpelcom,  POTRAZ

Countries:

Zimbabwe

Tags:

M&A buyouts & divestments

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