Scam to overvalue Telecel exposed

A Scam to overvalue Telecel Zimbabwe has been exposed amid reports that the company is practically bankrupt with no ability to meet its short-term and long-term liabilities.

In addition, the company does not have an operating licence, has ageing assets and as such the $50 million valuation and not $200 million, is a true reflection of what the company is worth, analysts have said.

Barclays Bank International, who are selling the other 60 percent on behalf of Vimpelcom, have valued the company at $200 million which means the 40 percent shareholding that Brainworks Capital is acquiring should be $73 million.

The 60 percent which is up for sale is priced at $127 million.

In a development akin to the arbitrage (burning) of the hyperinflationary era, Jane Mutasa claims that the investment in Telecel through Empowerment Corporation has increased to $200 million. However, facts on the ground show that the business is worth $50 million or even less.