Government looks set to sell Rwandatel by year-end

Mergers, Acquisitions and Financial Results

The government of Rwanda is hoping to sell telecoms operator Rwandatel by the end of the year in a move aimed at raising funds to pay off the company’s creditors, The New Times reports.

The decision follows an order by the commercial court in Nyarungenge to liquidate the firm, which had its mobile licence revoked in April 2011 due to its failure to meet licence obligations. The court stated that liquidation is the best way to safeguard the interests of Rwandatel’s creditors and other stakeholders.

‘The liquidation strategy to be adopted is to sell the business assets to another player offering telecommunication services. The move will ensure maximisation of the value of assets and enable continuation of service delivery without interruption,’ commented Rwandatel’s administrator, Richard Mugisha. All Rwandatel creditors are requested to submit their claims against the company by 18 August 2011.