Business / Companies
MTN takes over Telecel Zimbabwe
06 May 2015 at 06:30hrs | Views
INFORMATION Communication Technology and Courier Services minister Supa Mandiwanzira today is reported to have revealed that South African telecoms group MTN has taken over Telecel Zimbabwe, at least two people in closer to the talks have revealed..
Frontrunners for the stake included Unitel and MTN.
Potraz last week granted Telecel Zimbabwe a special 30 day licence to wind up operations on the basis that the company has failed to comply with the country's indigenization laws and to pay for its licence fees.
Potraz in its Regulatory Order 1/2015 noted a letter dated 2 April 2015 from the ICT minister which was an acceptance by the Government of Zimbabwe of Global Telecom's offer to sell its indirect 60% stake in Telecel to the government. It is not yet clear as to whether the government of Zimbabwe used that offer to entice MTN or not. Details are still sketchy.
The cancellation of the licence was expected after ICT, Postal and Courier Services minister Supa Mandiwanzira told journalists last month that Cabinet had approved the closure of Telecel Zimbabwe on the grounds that it was operating without a licence and was also in breach of the empowerment laws.
MTN has had representatives in Zimbabwe for the past month to hold meetings with government officials and local banks.
MTN had previously attempted to enter the Zimbabwean mobile market through an acquisition of a 49% interest in state-owned cellco NetOne in 2010, though the deal collapsed with some government members opposed to the privatisation of NetOne.
Details of the deal are still sketchy. It is unclear whether the government of Zimbabwe bought the VimpleCom stake and then sold it to MTN or Vimplecom sold its stake directly to MTN.
More to follow.....
Frontrunners for the stake included Unitel and MTN.
Potraz last week granted Telecel Zimbabwe a special 30 day licence to wind up operations on the basis that the company has failed to comply with the country's indigenization laws and to pay for its licence fees.
Potraz in its Regulatory Order 1/2015 noted a letter dated 2 April 2015 from the ICT minister which was an acceptance by the Government of Zimbabwe of Global Telecom's offer to sell its indirect 60% stake in Telecel to the government. It is not yet clear as to whether the government of Zimbabwe used that offer to entice MTN or not. Details are still sketchy.
The cancellation of the licence was expected after ICT, Postal and Courier Services minister Supa Mandiwanzira told journalists last month that Cabinet had approved the closure of Telecel Zimbabwe on the grounds that it was operating without a licence and was also in breach of the empowerment laws.
MTN has had representatives in Zimbabwe for the past month to hold meetings with government officials and local banks.
MTN had previously attempted to enter the Zimbabwean mobile market through an acquisition of a 49% interest in state-owned cellco NetOne in 2010, though the deal collapsed with some government members opposed to the privatisation of NetOne.
Details of the deal are still sketchy. It is unclear whether the government of Zimbabwe bought the VimpleCom stake and then sold it to MTN or Vimplecom sold its stake directly to MTN.
More to follow.....
Source - Byo24News
