Chad Government Sells Majority Stake in Local Telco
Published on: 6th Sep 2010
Note -- this news article is more than a year old.
The government of Chad has signed a sales agreement with a UK based company, Mid Cost to acquire 60% stake in the local dominant telco, Sotel TChad. Citing authoritative sources, the APA news agency said that the the Chadian government retains a blocking minority of 33% in the company.
The remaining 7% stake in the company is reported to be given to the employees. The amount paid for the company has not been disclosed.
Under the terms of the contract, the British firm will build a new headquarters building for Sotel.
Sotel TChad operates both a mobile and landline network.
Last June, Orascom Telecom Holding (OTH) finally settled a long running dispute with the government and was paid US $4.9 million in satisfaction of an International Chamber of Commerce (ICC) panel award.
The dispute arose from a decision by the Chadian Ministry of Telecommunications to invalidate the transfer of 51% of the shares of TchadMobile to OTH despite the fact that a valid agreement was entered into in late 2002 between OTH and Sotel Tchad. As a result, OTH suspended its operation of TchadMobile in July 2004.
On the web: African Press Agency