E-Corp to offload 40% Telecel stake; Vimpelcom has three interested in its 60% share

Mergers, Acquisitions and Financial Results


The Zimbabwean consortium Empowerment Corporation (E-Corp) is to go ahead with the sale of its 40% stake in the country's number-three mobile operator Telecel to Brainworks Capital Management. Brainworks offered USD20 million to acquire E-Corp's interest in January this year, but last month a number of the consortium's shareholders took the issue to court in an attempt to derail the deal amid wrangles over the exact ownership of E-Corp. TechZim now reports that the matter has been resolved and E-Corp's owners have agreed to revert to the original share split which was in place when the company was established in 1997, leaving the ownership as follows: James Makamba's Kestrel Corporation (15%), Leo Mugabe's Integrated Engineering Group (10%), Zimbabwe Farmers Union (9%), Jane Mutasa's Indigenous Business Women Organisation (9%), Zimbabwe Small Scale Miners Association (9%), Phillip Chiyangwa's Affirmative Action Group (9%), War Veterans Association (9%), and Warehoused shares (30%).

Meanwhile, the Russian-backed Vimpelcom group has said it has three parties interested in acquiring its 60% stake in Telecel, with one of these thought to be South African telco MTN. As reported by TeleGeography's CommsUpdate last month, Telecel, the smallest of the country's three cellcos, is facing the cancellation of its licence after the government decided to halt an agreement allowing the operator to defer licence fee payments.

Source: Telegeography 2 March 2015