Vimpelcom on Wednesday announced that it has agreed to sell its stake in Telecel Zimbabwe to a government-owned entity for US$40 million.
The Russian operator controls Telecel, a mobile operator in Zimbabwe, via its Global Telecom Holding unit. Vimpelcom owns 51.9% of Global Telecom Holding, which in turn owns 60% of Telecel Zimbabwe, via its Telecel International subsidiary.
Vimpelcom and GTH have brokered a deal to sell the stake in Telecel to ZARNet, an Internet and ICT services provider owned by the government, through the Ministry of Information & Communication Technology, Postal and Courier Services.
Closure of the deal is subject to customary conditions, Vimpelcom said.
There has been talk of Vimpelcom selling out of Zimbabwe for some time.
Earlier this year Reuters reported that the telco had offered its 60% stake to the government, which refused to buy it on the grounds that it did not have the funds. Empowerment Corporation, a gro up of local shareholders that owns the remaining 40% of Telecel, made a similar offer, the newswire said.
The government at the time said that ZARNet would pursue the opportunity. It is not yet clear whether ZARNet has also agreed a deal for Empowerment Corporation’s 40%.
Vimpelcom’s bid to sell the company to the state came after the government stepped in to prevent it selling the shares to a foreign buyer, Reuters explained.
Telecel competes with larger players Econet Wireless and NetOne in Zimbabwe’s mobile market.
