Following the reversal of the sale of Zamtel to Libyan LAP GreenN, the latter has expressed deep concern about the latest developments.
Earlier today the government of Zambia appointed a new acting CEO for Zamtel. In a statement, the government…
Following the reversal of the sale of Zamtel to Libyan LAP GreenN, the latter has expressed deep concern about the latest developments.
Earlier today the government of Zambia appointed a new acting CEO for Zamtel. In a statement, the government reportedly said that the ownership structure of the company would be changed, to ensure that nationals of Zambia would own a majority of the fixed-line operator.
Zambian finance minister Alexander Chikwanda had said earlier in the month that the government will take back the 75% stake in Zamtel from Libya-based Lap Green Networks.
LAP GreenN, which is part of the Libya-Africa Investment Portfolio (LAP) group, acquired a 75% stake in Zamtel from the government for US$257m in 2010. The government retained the remaining 25%.
In a statement today, LAP GreenN said it is “deeply worried by today’s announcement by the Zambian Government that it is acting to reverse the sale of Zamtel”.
The investment vehicle repeated that it had made efforts to solve the dispute with the government, but noted that it was not given the opportunity to meet and discuss the matter.
The dispute between state and LAP GreenN arose when, in autumn 2011, a new government took power in Zambia. Led by the Patriotic Front party, this new government has pledged to inspect some commercial deals organised by the previous administration.
Subsequently, justice minister Sebastian Zulu reportedly concluded that the Zamtel sale had been fraudulent and allegedly illegal because LAP GreenN had failed pre-qualification tests and Zamtel had been undervalued.
LAP GreenN said today: “Our acquisition was made through an open, transparent and competitive bidding process, overseen by well-respected international professional organisations and in strict adherence to Zambia’s established legal framework.
“We hope this situation can still be amicably resolved, and we welcome an opportunity to work with the Zambian Government to achieve this”.
