#BREAKING: ZARNET To Buy Back Telecel Shareholding from NSSA

The National Social Security Authority (NSSA) is negotiating a rights buy back deal with  ZARNet in a bid to following the completion of the acquisition of 100% shareholding in Telecel International.

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.

Deputy Editor 

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.

NSSA Chairman Mr  Robin Vela

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.

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