Maravi

(TALKZIMBABWE) Econet assumes full control of Burundi network

Econet assumes full control of Burundi network
by
28/12/2009 00:00:00

ECONET Wireless International has moved to secure complete control of its fledgling Burundi operation by buying out regional investment group PME African Infrastructure Opportunities plc in a US$15 million transaction.

PME, a regional investment group which targets infrastructure opportunities in sub-Saharan Africa, captured a 49.5 percent interest in Econet Burundi after investing US$10 million into the company by way of cash and equity financing.

Econet International needed the capital injection to finance the build-out of its Burundi business which the pan-African telecoms group acquired as Burundi ST Cellular in 2006.

However, the mobile phone operator, which is controlled by South Africa-based Zimbabwean telecoms entrepreneur Strive Masiyiwa, advised PME that it intended to buy out the Alternative Investment Market (AIM) listed group for a consideration of US$15 million.

For PME the transaction, expected to be completed by December 31 2009, represents a 40 percent premium on its initial US$10million investment into the joint venture.

"The decision by Econet Wireless to exercise its option to call our investment secures an attractive return for the Company and illustrates the value that exists in the African infrastructure market,” PME Chairman David von Simson, said.

At the time of Econet’s acquisition in 2006, ST Cellular was one of four mobile phone companies operating in the Burundi market with a subscriber base of about 25 000 customers.

The subscriber numbers have since increased to 80 000 between April and December this year alone.

The company’s Managing Director, Darlington Mandivenga says they are now looking at boosting customer numbers to 800 000 following the introduction of rechargeable solar handsets into a market plagued by continuous power supply problems.

Econet also has operations in Botswana, Kenya, Lesotho, Morocco, South Africa and the United Kingdom.

In addition the group holds minority interests in a United States-based operator which runs mobile phone services in New Zealand, Haiti, Bolivia and the Dominican Republic.

Labels: BURUNDI, ECONET

posted by MrK @ 4:47 AM