Telecel Globe has submitted its proposal to reduce its 60% stake to 49% in its Zimbabwean unit to comply with empowerment laws, The Herald reports.
The company, which is owned by Egypt’s Orascom was not only obliged by the Indigenisation Act to reduce…
Telecel Globe has submitted its proposal to reduce its 60% stake to 49% in its Zimbabwean unit to comply with empowerment laws, The Herald reports.
The company, which is owned by Egypt’s Orascom was not only obliged by the Indigenisation Act to reduce its shareholding but also by the terms of the licence, which stipulate that after five years from the award, the licence holder must reduce its stake in the operator to 49%. Telecel received its licence in 2002 but reportedly argued that it was unable to decrease its stake due to hyperinflation as nobody in Zimbabwe was able to guarantee international euro or US dollar loans. As a result, its licence was suspended but the government has accepted that it continues to provide services until the issue is solved.
CEO Kai Uebach was quoted saying that Telecel Zimbabwe would not be listed on the local exchange. This had been an option considered by Telecel to reduce its stake.
The proposal, which was approved by the Empowerment Corporation, was submitted to Transport and Infrastructural Development Minister Nicholas Goche, and Youth Development, Indigenisation and Empowerment Minister Saviour Kasukuwere.
The company was not immediately available for comments.