Zimbabwean cellco Telecel is close to being sold to the local government, POTRAZ minister Supa Mandiwanzira has told state-owned radio. Shareholders Vimpelcom (NASDAQ:VIP) and Empowerment Corporation (EC) have offered to sell their respective 60% and 40%…
Zimbabwean cellco Telecel is close to being sold to the local government, POTRAZ minister Supa Mandiwanzira has told state-owned radio. Shareholders Vimpelcom (NASDAQ:VIP) and Empowerment Corporation (EC) have offered to sell their respective 60% and 40% stakes in the number three player, he said.
According to local newspaper News Day, negotiations are underway, with CBZ acting as financial adviser.
Possible state-owned buyers include reported frontrunner ISP Zarnet and mobile operator NetOne, while South Africa-based MTN has also been linked to takeover interest.
Spokespeople for Vimpelcom and EC were not immediately available for comment.
The number three player has been the subject of a drawn-out battle with the government, which accusing 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.
