Zimbabwe: State decides 100% takeover of Telecel

The Zimbabwean government has decided not to sell part of its 60 percent stake in Telecel Zimbabwe to interested investors, but instead buy out the minority shareholders and make the company wholly state-owned, reports The Independent citing a cabinet minister.
A number of investors, both foreign and local, have been tabling offers to buy shares in Telecel and NetOne as well as fixed-line telecoms company TelOne, which all need more capital.

ICT minister Supa Mandiwanzira told the Zimbabwe Independent the cabinet had resolved to buy out the minority shareholders. Mandiwanzira said the government was approached by different investors, including businessman James Makamba. The government told them that if they are serious in their intention to buy, they should provide proof of funding. He said the government has not seen it yet and this has emboldened its position that it really must buy out Telecel, because there is a lot of money required to revive the business.

Mandiwanzira said the decision by cabinet to buy out minority shareholders came after government noticed that the current shareholders are not sufficiently able to capitalize the country’s 3rd-largest mobile network operator. He said the minority shareholders can either negotiate with government to walk away with something, or there could be a rights issue, whereby “everybody must now come to the party and pour in funds” to the company, so its advisors are looking at the various options.

There is a mystery as to who really owns the Telecel Zimbabwe minority shareholding, said the Independent, which also involves an unresolved court case.

Source: Telecompaper