Maravi

ZDA, RP Capital to handle Zamtel sale

ZDA, RP Capital to handle Zamtel sale
Written by Kabanda Chulu
Thursday, September 17, 2009 12:25:56 AM

ZAMBIA Development Agency (ZDA) director general Andrew Chipwende yesterday announced that ZDA will be the main privatisation agent for Zamtel with RP Capital Advisors Limited as the financial advisor. Announcing the government's formal intention to offload 75 per cent shares in Zambia Telecommunication (Zamtel) Limited, Chipwende said in Lusaka that the ZDA would implement the privatisation of Zamtel with RP Capital Advisors Limited as its exclusive financial advisor relating to this transaction.

Chipwende said there was need to find financially stable entities with experience in telecommunications infrastructure development to buy the 75 per cent shares in Zamtel Limited.

"The reason why we have placed advertisements in the international media in countries such as China, India, Nigeria, South Africa, among others, is because we are looking at emerging markets that are growing with sound financial resources and vast experience in telecommunications infrastructure development and it's too early to state the response from bidders so far since the adverts started running yesterday," Chipwende said.

"So the government will sell 75 per cent equity interest in Zamtel and retain 25 per cent shares that will be sold in full or in part through an initial public offer on the Lusaka Stock Exchange and ZDA will be the main privatisation agent with RP Capital Advisors Limited being its financial advisor."

Chipwende said entities that were associated directly or indirectly with existing mobile phone operators in Zambia would be excluded from participating in the sale of Zamtel Limited. He explained that prospective bidders must meet certain conditions in order to pre-qualify upon payment of US $20,000 non-refundable administrative fees.

"Bidders must meet criteria such as a minimum five years of licensed operation in the telecommunications industry with more than three million active subscribers on fixed or mobile networks and a minimum market capitalisation of US $500 million for public listed entities while equity or private capital should have a minimum capitalisation of US $250 million," Chipwende said.

He said applications from consortium would be accepted but the lead member of the consortia must have no less than 50 per cent share in the consortium and should meet the criteria of having five years experience and more than three million subscribers while the other consortia members should jointly meet capitalisation requirements.

"Entities being owned or associated with existing mobile operators in Zambia either directly or indirectly will be excluded from prequalification directly or through consortia," said Chipwende.

Labels: ANDREW CHIPWENDE, NEOLIBERALISM, PRIVATISATION, ZAMTEL

posted by MrK @ 11:29 PM