Chad Government Sells 60% Stake in Sotel Tchad - Again
Published on: 2nd Nov 2010
Note -- this news article is more than a year old.
Libyan state owned firm LAP Green Network has acquired a majority stake in Chad's Sotel telecoms firm for USD90 million. The deal, which gives the Libyan firm 60 percent stake in Sotel Tchad, was signed during a visit to Chad by Libyan leader Muammar Gaddafi.
"The value of the contract which was signed today during the Libyan leader's visit is $90 million," LAP Green Network Managing Director Abdulbaset Elazzabi told Reuters. The deal came with a commitment by the Libyan company to invest up to $100 million in boosting Sotel's network.
Citing authoritative sources, last month the APA news agency said that the the Chadian government had already sold the 60% stake to a UK based company, Mid Cost for an undisclosed amount. It is presumed that the UK company failed to complete on the deal.
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.