Makamba and Mutasa buy out Telecel International’s Zimbabwe stake

Mergers, Acquisitions and Financial Results

Telecel Zimbabwe’s major shareholders James Makamba and Jane Mutasa have gained control of the firm after paying US$3.5 million to Telecel International for the an 11 percent stake. This brings Telecel International under the 50% limit put by the Government on foreign ownership.

Telecel International held 60 percent of Telecel Zimbabwe while the remainder was in the hands of Empowerment Corporation, a local consortium comprising several individuals and groups. Under the empowerment group, Kestrel, owned by Makamba, holds 23 percent, IEG (18 percent), Indigenous Business Women's Organisation headed by Mrs Mutasa (17 percent), National Miners' Association (14 percent) and Zimbabwe Farmers' Union (14 percent). Magamba eChimurenga claims a 14 percent stake in the empowerment group. The deal has yet to be approved by POTRAZ, the Zimbabwean regulator and there is row amongst local shareholders.

(Source: The Herald)