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Zimbabwe Government Buys Majority Stake in Telecel

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Zimbabwe based ZARNet has bought a 60% stake in the local mobile network, Telecel for USD40 million.

The stake was sold by VimpelCom, through its 52% ownership of Global Telecom Holding.

The sale had been expected after the government threatened to shut the mobile network down, accusing it of not paying its license fee or being compliant with regulations about local ownership.

ZARNet is wholly owned by the Government of the Republic of Zimbabwe through the Ministry of Information & Communication Technology, Postal and Courier Services.

Controversially, it's been reported that the funding for the purchase came from the Zimbabwean state pension fund, which initially objected to the deal.

There is also an outstanding shareholder loan of USD80 million which will need to be repaid.

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Tags: telecel  vimplecom