MERGERS, ACQUISITIONS AND FINANCIAL RESULTS
TELECOM NAMIBIA’S MUNDO STARTEL STAKE CONFIRMS ITS ENTRY INTO ANGOLA
Telecom Namibia announced its entry into the Angolan telecommunications market with the acquisition of a 44% stake in Mundo Startel, reports The Namibian. The deal, which was sealed in Luanda, will see Telecom invest USD14m over three years.
Mundo Startel will enter a market still recovering from the ravages of war where current telecommunications provider, Angola Telecom, has experienced expansion difficulties, said the head of the Telecom Namibia negotiations team, Wessel van der Vyver.
The other 56% of Mundo Startel is owned by private concerns in Angola. They are Mundo Telecommunications, Banco Commercial Angolano, Jembas Technical Assistance Lda, Manuel Joao Carneiro and Nazare de Jesus Fransisco.
"The operating company Mundo Startel’s headquarters will be situated in Luanda. It will be governed by a board of directors, four from the Angolan side and three from Telecom Namibia." said Titus Haimbili, Telecom Namibia chairman.
"Manual Carneiro (head of Mundo Telecommunications) has been elected chairman of the board."
Telecom Namibia MD Frans Ndoroma said the venture, "will be a free-standing company structure with its own managing director, technical manager and financial manager, who will be drawn from Telecom Namibia and designated to the Angolan operations for a period of five years. Other managers for the company will be provided from the Angolan side."
Van der Vyver said Mundo Startel will start with a network roll-out plan in line with the licensing requirements which will cover Luanda and Lobito province in the first year and spread through the other provinces to cover the whole country within two years. The company is expected to employ 70 Angolans.
Ndoroma said that due to Angola’s challenging geography, the new company would concentrate on installing "next generation" networks, VSAT and wireless digital technology instead of digging ditches and putting up telephone poles.
The venture signified the first step in Telecom Namibia’s strategic intent to penetrate the Southern African Development Community market.
Business Day Africa