Four operators including Russia’s Altimo and India’s BSNL have submitted bids for a majority stake in Zambia’s telecom incumbent, Zamtel, said the Zambia Development Agency (ZDA).
Libya’s Lap Green Networks and Angola’s Unitel also submitted bids for…
Four operators including Russia’s Altimo and India’s BSNL have submitted bids for a majority stake in Zambia’s telecom incumbent, Zamtel, said the Zambia Development Agency (ZDA).
Libya’s Lap Green Networks and Angola’s Unitel also submitted bids for the sale, which could see the government yield up to 75% in Zamtel.
The bidders were among eight shortlisted candidates for the beauty contest. The other suitors included Unitel backer Portugal Telecom, Orascom’s Telecel Globe, MTNL and South African fixed-line operator Telkom.
Telecel said it decided not to bid in order to focus on existing operations.
“While Zambia is an attractive market for us that fits well within our current portfolio in the SADC region, we chose not to proceed as we feel that we need to consolidate the gains that we have made with our current operations before taking on any new ones,” a spokesperson said.
The ZDA now plans to announce a shortlist of preferred bidders on January 11 or 12. It is advised by London-based RP Capital Advisors.
In addition to its own fibre optic network, Zamtel will have access to that of the power utility Zesco, which is expected to cover the country’s nine provinces within nine years.
Under a non-exclusive deal, Zamtel agreed to help Zesco develop and commercialise its network while sharing related revenues.
Meanwhile, the country’s opposition party has threatened that it would renationalise the operator if it gets elected to power in 2011, potentially repeating a scenario that is playing out over the sale of Ghana Telecom to Vodafone.