THE government has begun paying off the balance to acquire a 60% shareholding in Telecel Zimbabwe and the transaction should be complete by next week. Sources yesterday revealed that the government had sent $30 million to VimpelCom.
Source: Govt paying off Telecel shareholding balance – Southern Eye May 24, 2016
BY VICTORIA MTOMBA
“The transaction is still to be completed and by next week it should be complete. The government will hold 60% shareholding of Telecel Zimbabwe,” a source said.
The total value of the 60% stake in Telecel by government is $40 million and government made the initial deposit of $10 million last year.
Telecel International, which owns 60% Of Telecel Zimbabwe, last year agreed to sell the stake for $40 million to Zarnet.
Zarnet is owned by government through the Ministry of Information Communication Technology, Postal and Courier Services.
Contacted for comment, Telecel Zimbabwe spokesman, Francis Chimanda could not disclose any information on the transaction.
“This is a shareholder issue and once we have confirmation, we will share an official statement,” he said.
VimpelCom’s subsidiary, Global Telecom Holdings, entered into an agreement with the government to sell its 60% stake in Telecel Zimbabwe in November last year.
VimpelCom is an international provider of telecommunications services headquartered in Amsterdam Netherlands.
ICT Minister Supa Mandiwanzira said the transaction was currently being executed.
“When all formalities are completed, the ministry will issue a statement to advise stakeholders accordingly,” he told NewsDay on Friday
COMMENTS
This govt’s priorities are upside down! Part of the reason of introducing bond notes is to curb externalisation and yet the govt saw it fit to officially remit/externalise $40 million in exchange for Telecel Zimbabwe shares instead of importing raw materials , maize or medicines.The govt is confused becoz on one hand its wooing foreign investors while expelling existing foreign investors. This shows that it is govt’s actions that triggered the cash crisis and bond notes are not a solution to the cash shortages. If anything there will be more forex outflows thru the currency black market than b4.