EC To Sell Its Telecel Stake To Brainworks For $20M, Deal Agreed.

After the recent blow against Jane Mtasa to cancel the EGM meeting which was supposed to announce their acceptance of Brainworks  bid to buy their whole stake, the Economic Empowerment, a consortium of stakeholders which owns 40% of Telecel stake seems to have agreed to sale the stake to Brainworks for $20 million.

According to the outcome of the recent EGM resolution, The EC shareholders have unamiously agreed to restore Brainworks Capital Management bid to buy out their 40% stake. 

 telecel 2

By: Gody Jokonya and Steve Denga

When TechnoMag called, the current marketing director Mr Patrick Zhuwao confirmed that they unamiously agreed as EC to consider the offer by Brainworks while they have also resolved the grievances of all the founding shareholders.

In addressing the EC’s founding shareholders grievances, the seven shareholders will see an increase to their stake.

Affirmative Action Group (AAG), Indigenous Business Women Organisation (IBWO), Zimbabwe Farmers Union (ZFU), National Miners’ Association, Zimbabwe Liberation War Veterans Association (ZLWVNA) will revert to original shareholding structure of 12.86 percent, 14 percent for Integrated Engineering Group and 21 percent.

EC’s chief executive Patrick Zhuwao confirmed the development which will enable Telecel meet its licence obligation.

“We agreed to accept the offer from Brainworks which will ensure that Telecel is licenced and hope Brainworks will be able to fulfill the licence requirements to comply with the indigenization requirements,” says Zhuwao.

In an earlier statement, Dr Makamba echoed confidence in resolving the legacy impasse citing the contribution and hard work by Telecel Zimbabwe employees and partners, as well as to the national fiscus since inception and especially over the past difficult years.

However the Minister of Information Communication Technology, Postal and Courier Services Supa Mandiwanzira said compliance is the prime concern for government, hence they cancelled the Telecel Licence.

“Telecel is not compliant with the licencing requirements neither are they compliant with the statutes of the Indeginisation Act and the Potraz Act which requires 51 per cent shareholding from locals. So, in essence, whoever decides to buy into the company must know that it does not have a licence neither is there a guarantee that it will get a licence. That position is not influenced by that transaction.”

This However does not necessarily mean that the Telecl Zimbabwe has sold their stake to BrainWorks, its a mere bid which entirely depends on Brainworks actually paying the $20million, not forgetting that they have to be prepared to pay the sticking Licence Balance currently pegged at $137, 5 million dollars.

Leave a Reply

%d bloggers like this: