Telecel Zimbabwe Not Affected in the $65m Acquisition

Econet11Econet Wireless has acquired 100 percent of VimpelCom’s U-COM in Burundi and Telecel CAR for $65 million.
VimpelCom owned 51.9% owns of Global Telecom Holding S.A.E. which has sold its entire 100% stake in Telecel Globe Limited (“TG”), which owns 100% of each of U-COM in Burundi and Telecel CAR in Central African Republic, for USD 65 million.

The deal doesn’t affect Telecel Zimbabwe in anyway.

Econet Wireless Group CEO Mr Craig Fitzgerald confirmed a statement, “Yes, I can confirm that our Mauritius registered telecoms holding company, Econet Wireless Global, has acquired Vimpelcom’s two operations in Burundi and Central African Republic.”

Orascom Telecom which changed its name to Global Telecom Holding SAE with VimpelCom Ltd. as it’s parent company also owned Telecel CAR and Burundi’s U-COM.

There were earlier reports that Vimpelcom had found a buyer for it’s telecom subsidiaries in Sub-Saharan Africa which included Telecel Zimbabwe, Telecel CAR and Burundi’s U-COM for close to $400m but seems the deal did not go through and the firm decided to exclude it’s Zimbabwe assets for sale.

Telecel Zimbabwe is currently the second largest mobile phone network in Zimbabwe, with more than 2 500 000 active subscribers and jointly owned by Telecel Globe and the Empowerment Corporation. Telecel Globe is a subsidiary of Orascom Telecom Company, a major international telecommunications company with interests in Europe, Africa, Asia, the Middle East and North America. The Empowerment Corporation is a Zimbabwean consortium made up of a number of Zimbabwean companies.

Neil Telecom, a telecoms venture owned by Laurent Fouchers had last year agreed to buy the Vimpelcom’s two telecom’s but the deal did not go through as agreed.