Zimbabwe’s state-owned mobile operator NetOne is in talks with South Africa’s MTN and other African mobile operators for the sale of 49% of the company, Reuters reports quoting the company managing director.
Reward Kangai reportedly valued NetOne at…
Zimbabwe’s state-owned mobile operator NetOne is in talks with South Africa’s MTN and other African mobile operators for the sale of 49% of the company, Reuters reports quoting the company managing director.
Reward Kangai reportedly valued NetOne at between US$500m and US$800m.
According to Bloomberg, Kangai said the government has agreed to allow foreign investment in NetOne. He added that the company needed US$100m investment per year in its network to increase its subscriber base from the current 1.3 million and to roll out a 3G network.
He reportedly also said that an agreement was expected for Q2.
NetOne is the smallest mobile in Zimbabwe behind Econet Wireless and Telecel. Last year, NetOne already held preliminary talks with potential investors, including MTN. But some members of the government expressed their opposition to the privatisation arguing that the poor performance of the operator was a management issue.
