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LAP Green share freeze hasn’t hurt Zamtel operations - MD

LAP Green share freeze hasn’t hurt Zamtel operations - MD
By Chiwoyu Sinyangwe
Mon 18 Apr. 2011, 03:59 CAT

ZAMTEL managing director Hans Paulsen said the freezing of LAP Green’s 75 per cent shareholding has not hurt the operations of the company. And Zamtel, the country’s sole total telecommunications provider has rebranded all its units to be called Zamtel.

Paulsen said Zamtel continued to operate normally and embarking on expansion programmes that would see it grab about 25 per cent of the mobile phone market share by 2016 from the current seven.

Paulsen said the developments in Libya would not affect the operations of the company and that there was no need for customers to worry.

“LAP Green's 75 per cent shares in Zamtel have been frozen, just like the Minister of Finance and National Planning intimated to Parliament recently,” Paulsen told journalists last Friday during a breakfast meeting.

“What it means is that LAP Green can’t get their dividends out of Zamtel or transfer the shares. And in any case, Zamtel is not yet in a position to declare any dividends.”

He, however, expressed optimism that the government, which currently owns 25 per cent shares in the company, would help to ensure that the company's operations were not affected.

Last month, finance minister Dr Situmbeko Musokotwane announced that Zambia had frozen assets belonging to the Libyan government and its leaders in compliance with a United Nations resolution.

Top on the list is LAP Green’s 75 per cent Zamtel, bought last year by Libya's LAP Green Networks for US $257 million in a deal criticised by key stakeholders and the opposition political parties.

“My government will ensure compliance in the management of these assets to comply with the UN resolution,” Dr Musokotwane told Parliament.
And Paulsen announced that all units under Zamtel would continue using one brand name called Zamtel.

Paulsen also said Zamtel continued to enjoy market confidence in Zambia despite its links to the Muammar Gaddafi regime through LAP Green. The Gaddafi administration is currently raging a war against Libyans pushing for an end to his 41-year rein.

Paulsen said mobile phone unit popularly called Cell Z, Zamtel Online are some of the brand names that would stop to exist and fall under the Zamtel name.

After acquiring 75 per cent shares of Zamtel, LAP Green announced plans to inject US $120 million in the firm to recapitalise and boost the operations of telecommunication company.

Although Zamtel was sold last year in a deal orchestrated by former transport minister Dora Siliya, President Rupiah Banda’s son Henry and Cayman Islands-based RP Capital, ZDA were later involved as an investment and privatisation wing of the government.

LAP Green is wholly state-owned via the Libyan Investment Authority, a sovereign wealth fund established under Gaddafi as an investment vehicle for windfall revenues from oil revenues.

Labels: LAP GREEN, LIBYA, PRIVATISATION, ZAMTEL

posted by MrK @ 7:09 PM