After buying back the Telecel Zimbabwe stake from the National Social Security Authority, Ministry Of ICT in the second quarter of this year paid $7 million for facilitating the acquisition by Zarnet.
There was some tussling between NSSA and Zarnet for the much coveted TZ 60 percent stake but the latter eventually won.
In the deal, NSSA gets $43, 3 million to be paid in quarterly instalments over three years.The State-run pension fund made the decision to exit TZ following negotiations to restructure the financing deal that saw Zarnet acquire 100 percent equity in Telecel International — which owns 60 percent of TZ — through a transfer of rights and buy-back agreement.
Nssa chairperson, Robin Vela recently said the exit structure would see the authority, on a secured basis, being paid $43,3 million in quarterly instalments over a three-year period with a resultant internal rate of return of approximately 16 percent.
“The first payment of $7 million was received in the second quarter of 2017,” the Nssa boss said in a statement accompanying the statutory fund’s financials for the year to December 31, 2016.
Nssa earlier this year announced its intention to relinquish its controlling stake in TZ to Zarnet after three years.
Zarnet’s acquisition of the TZ stake was achieved through a mezzanine structure valued at $30 million, provided by Nssa, after government came up with a $10 million deposit in the $40 million deal.
Marred in controversy, the transaction gives government controlling stake in the country’s third largest mobile network operator to the little know government Internet provider, Zarnet.
Reports last year indicated that Nssa was not “entirely happy” about the prospect of losing out on an equity holding in TZ — or just playing the role of a financier and — where it sees huge opportunities for rich pickings, and acquiring an asset that can add value to its policy holders.