TEAMS FIBRE CABLE SHAREHOLDING MEETING SET FOR JULY 4TH

Mergers, Acquisitions and Financial Results

Stakeholders in The East Africa Marine System (TEAMS) project will meet on Wednesday this week to discuss the shareholding structure. The project seeks to boost the region's communications infrastructure by laying a fibre optic cable link from Fujairah in the Gulf of Oman to Mombasa.

Communication Permanent Secretary, Bitange Ndemo said the process to identify shareholders will begin next week. Standard Chartered Bank, which was picked as the lead advisor in the deal, signed the agreement documents at the Kenya College of Communications Technology (KCCT) on Wednesday.

The Government will own a 40 per cent stake in the venture, while Etisalat of the United Arab Emirates will take up 20 per cent stake. The other 40 per cent is expected to go to regional telecommunications companies, Internet service providers (ISPs) and governments in the region. Dr Ndemo refuted Tuesday reports that the Government was in dispute with Etisalat over the shareholding structure, with Etisalat insisting on owning a 40 per cent stake. Finance minister, Amos Kimunya allocated Sh1 billion in this year's budget for the TEAMS project.

(SOURCE: The Nation)