Zimbabwean cellco Telecel is close to a takeover by government-owned ISP Zarnet, POTRAZ minister Supa Mandiwanzira has told parliament.
Current owners Vimpelcom (NASDAQ:VIP) and Empowerment Corporation, which hold stakes of 60% and 40% respectively,…
Zimbabwean cellco Telecel is close to a takeover by government-owned ISP Zarnet, POTRAZ minister Supa Mandiwanzira has told parliament.
Current owners Vimpelcom (NASDAQ:VIP) and Empowerment Corporation, which hold stakes of 60% and 40% respectively, had offered to sell the company to the state, which declined due to lack of funding, he added.
Mandiwanzira acknowledged that Vimpelcom’s agreement to sell its stake to a foreign buyer had been overruled by the government, which is headed by Robert Mugabe. South Africa’s MTN has previously been linked to takeover interest.
According to local newspaper News Day, which appeared to cite government sources, negotiations are already underway, with CBZ acting as financial adviser.
Reuters cited Telecel as saying it did not know of any offer made by its parent Vimpelcom. A spokesperson for the Russian telco declined to comment.
Another reported state-owned buyer is mobile operator NetOne.
The number three player has been the subject of a drawn-out battle with the government which, having accused it of not paying its licence fees or adhering to a 49% foreign ownership cap, revoked its licence earlier this year – a move Vimpelcom successfully appealed in the courts.
Telecel currently competes with market leader Econet wireless and state-owned NetOne.
State-owned fixed-line incumbent TelOne owns a mobile licence that it does not yet use. CEO Chipo Mtasa has indicated that she would like to share mobile infrastructure with an existing player, following government suggestions that it may make infrastructure sharing mandatory.
