Just like we had hinted earlier on through our always accurate #MondayBlues, Both the government of Zimbabwe through the ministry of ICT Postal and Courier Services and Vimplecom today have both published statement confirming the sale and conclusion of the 60% stake in Telecel Zimbabwe.
This marks exactly a year and some days since Vimplecom officially announced their intent and interest to sell stake. Although this was met with an initial deposit of $10 million by Zarnet, Vimplecom had refused to consider the payment as deal done and kept pressurizing the government to conclude the deal which had gone for so long.
Vimplecom team which had initially left Zimbabwe, made a surprise come back to Telecel Zimbabwe and were controlling management on how to run, invest and direct the company operations while the government of Zimbabwe strongly felt that their interests were no longer being represented as Vimplecom increased their presence.
This led to a long and antagonizing period for Telecel Zimbabwe, which technically had two bosses to serve with seriously conflicting interests, a move which strained and depressed morals at Telecel Zimbabwe, seeing some key executives calling it quits as the boat was shaken.
MINISTRY OF INFORMATION COMMUNICATION TECHNOLOGY, POSTAL & COURIER SERVICES
Further to the announcement by Global Telecom Holdings S. A. E. (GTH) made on 30 November, 2016; the Ministry of ICT, Postal and Courier Services is pleased to confirm that ZARNet (Private) Limited has completed the previously announced acquisition of 100 percent shareholding in Telecel International Limited from GTH. The transaction was completed for a consideration of $40 million; of which $21 million has been transferred by ZARNet (Private) Limited to GTN outside Zimbabwe, and the balance of $19 million will be paid as deferred consideration.
Telecel International Limited owns 60 percent shareholding in Telecel Zimbabwe (Private) Limited. ZARNet (Private) Limited is wholly owned by the Government of Zimbabwe through the Ministry of ICT, Postal and Courier Services. As a result of the transaction completion, the Government of Zimbabwe through ZARNet (Private) Limited takes effective management control of Telecel Zimbabwe. The completion secures the future of Telecel Zimbabwe as an operation and the Minister of ICT, Postal and Courier Services would like to assure all employees, customers, suppliers and other stakeholders that the future is orange; it is bright!
Government’s intentions remain to secure 100 percent shareholding in Telecel Zimbabwe, in the process sanitising the numerous shareholder related disputes that have dogged business growth and scared away investors. The Minister of ICT, Postal and Courier Services would like to thank His Excellency the President Cde. R. G. Mugabe for his excellent guidance in closing the transaction; the Cabinet for its clarity and direction on the matter and ZARNet’s financiers. Specifically, the Minister of ICT, Postal and Courier Services would like to single out the Attorney General Advocate Prince Machaya, the Minister of Finance and Economic Development Honourable Patrick Chinamasa, the Minister of Small and Medium Enterprises Honourable Stembiso Nyoni, the Minister of Public Service, Labour and Social Welfare Honourable Priscah Mupfumira and the Governor of the Reserve Bank of Zimbabwe Dr. John Mangudya; without whose unwavering work and support, closure would not have been possible. The Ministry of ICT, Postal and Courier Services would also like to thank the negotiating team from Global Telecom Holdings S.A.E. for their professionalism.
Statement issued on 30th November 2016 by:
Honourable Supa C. Mandiwanzira (MP)
MINISTER OF INFORMATION COMMUNICATION TECHNOLOGY, POSTAL AND COURIER SERVICES
Here is the full statement form Vimplecom.
30 Nov 2016
VimpelCom and Global Telecom complete sale of Zimbabwe operations
Amsterdam (30 November 2016) – VimpelCom Ltd. (“VimpelCom”) (NASDAQ: VIP), a leading global provider of telecommunications and digital services headquartered in Amsterdam and serving over 200 million customers, today announces that its 51.9% owned subsidiary, Global Telecom Holding S.A.E. (“GTH”), has completed the previously announced sale of Telecel International Ltd to ZARNet (Private) Limited in Zimbabwe for a consideration of USD 40 million.
Telecel International, a 100% owned subsidiary of GTH, owns 60% of Telecel Zimbabwe (Pvt) Ltd. ZARNet is wholly owned by the Government of the Republic of Zimbabwe through the Ministry of Information Communication Technology, Postal and Courier Services.