In their fourth quarter update, NSSA chairman Robin Vela said the two parties are in advanced negotiations in relation to restructuring the transaction; wherein from a NSSA perspective it will culminate in an acceptable equity return and enhanced security arrangements, while the ZARNet perspective translates to a feasible and favorable financing structure.
Under the new dispensation is that ZARNet will exercise the buy-back over a 3 year period on terms enshrined in a new agreement involving a number of related-parties to ZARNet.
Government through Zarnet, concluded the Telecel acquisition deal in which it acquired 60% of VimpelCom shareholding in Telecel Zimbabwe and US$40 million of the global investor’s shareholders’ loan of about US$100 million.
NSSA facilitated the acquisition of 100% equity in Telecel International which owns 60% of Telecel Zimbabwe by ZARNET through a transfer of rights and buy-back agreement in February 2016.
After securing a structured financial deal from local banks and other funders, government, fronting Zarnet, was able to raise a US$10 million deposit to pay VimpelCom.
Before the ZARNET deal, Telecel Zimbabwe was jointly owned by Telecel International, which had 60%, and Empowerment Corporation (EC), a Zimbabwean consortium made up of a number of local companies and investors who control 40% of the company.
Telecel is the country’s smallest mobile operator in terms of subscriber base, tailing after Econet and NetOne.