Econet buys Telecel

Econet Wireless Global (EWG) has acquired the assets of Russian global telecoms operator, Vimpelcom, in the Eastern and Central African countries of Burundi and Central African Republic.

EWG bought all of VimpelCom's shareholding in Telecel Globe for US $65 million, but the deal does not include Telecel Zimbabwe, according to a press release.

Econet Wireless now owns U-Com (or Leo, what Telecel is called in Burundi) and Telecel Central African Republic.

In as far as Telecel Zimbabwe is concerned, the state of ownership remains Vimpelcom 60% and the Empowerment Corporation, 40%. Telecel Zimbabwe is not part of the deal because Telecel Globe does not own 100% of Telecel Zimbabwe and has a complicated relationship revolving around Zimbabwe indigenisation.

Econet Wireless Group CE Craig Fitzgerald confirmed a statement on the transaction made by Vimpelom to the Cairo Stock Exchange.
 
"Yes, I can confirm that our Mauritius registered telecoms holding company, Econet Wireless Global, has acquired Vimpelcom's two operations in Burundi and Central African Republic," said Fitzgerald.
 
Econet Wireless Global has operations and investments in telecommunications businesses throughout Africa, the UK, Asia Pacific and Latin America. It also holds the controlling interest in Econet Wireless Zimbabwe, which is listed on the Zimbabwe Stock Exchange (ZSE).
 
Fitzgerald said the acquisition did not affect in anyway trading by Econet Wireless Zimbabwe.

"Econet Wireless Global owns a majority stake in the Zimbabwe operation, and it is not the other way round. I know many people make this mistake of thinking that because our Zimbabwean subsidiary is listed, it is also the holding company of all our businesses. That is not the case.  Econet Wireless Zimbabwe does not own businesses outside Zimbabwe," he said.
 
He said Econet Wireless Global is not a listed holding company and had no plans to do so. Econet Wireless Global is also the parent company of Liquid Telecom, which operates Africa's largest satellite and fibre optic system, with the latter spanning 12 countries.
 
Econet Wireless Global is itself a wholly owned subsidiary of Econet Wireless Group, a privately held group controlled by leading African industrialist, Strive Masiyiwa, who is based in the United Kingdom.