The Sunday Mail
Africa Moyo
THE Empowerment Corporation, which holds the remaining 40 percent stake in Telecel Zimbabwe after Government acquired 60 percent equity held by Dutch firm VimpelCom, is coy over what it will do with its minority – though significant – shareholding.
Last week, VimpelCom said ZARNet – a Government-controlled Internet service provider – had bought its 60 percent shareholding in Telecel for US$40 million.
Government has indicated willingness to buy-out EC’s 40 percent.
EC’s shareholders are Dr James Makamba (23 percent through Kestrel), IEG (18 percent), Dr Jane Mutasa (17 percent), and National Miners Association, Zimbabwe Farmers Union and Magamba eChimurenga (all 14 percent).
In February this year, some shareholders sought to engineer a US$20 million deal with private equity firm Brainworks Capital.
The deal fell through after Mrs Mutasa blocked an EGM scheduled for February 20, 2015 to sanction the sale.
EC’s legal advisor Mr Gerald Mlotshwa told The Sunday Mail Business last week that Government was yet to approach EC.
“We confirm that we are instructed by Empowerment Corporation (Private) Limited with regard to its shareholding in Telecel Zimbabwe (Private) Limited.
“We confirm that our client has no knowledge of the reported acquisition (of Telecel Zimbabwe). Its last formal communication with Government and its fellow shareholder, Telecel International, was many months ago; and inconclusive.
“Whereas our client is not a party, or privy, to whatever negotiations or transactions Telecel International might be engaged in with whomever in Zimbabwe or elsewhere, it nonetheless remains confident that all such parties will respect the formal and legal processes that must complied with to give efficacy to any sale and/or transfer of Telecel Zimbabwe shares,” said Mr Mlotshwa.
One of the shareholders, who spoke on condition of anonymity, said it was premature to finalise a position.
“We will have to see if the stake would be sold to the new shareholders; so talk to me next week because at the moment I am not ready to comment until we sit down with them and talk.
“But it is known that if you want to buy something, it depends if the holder wants to sell. You cannot go all over the place saying I want to buy this, I want to buy that when the owner does not want to sell?” said the shareholder, adding that the EC will not find it difficult to find common ground with Government as a potential suitor for the 40 percent stake considering they are “from the same country with them”.
Experts say Government is moving in to rid the telecommunications giant of the drama that has plagued the entity since its establishment.
Early in 2015, Government cancelled Telecel’s operating licence after the firm failed to regularise its shareholding structure to reflect indigenisation and economic empowerment regulations, which call for 51/49 percent ownership in favour of locals.
The mobile phone operators had also failed to renew its licence.
The company got a temporary reprieve to continue operating after the High Court suspended the cancellation pending finalisation of its legal battle with Government.
Telecel then paid a US$5 million installment in June as part of the US$137,5 million for the licence.
It is Zimbabwe’s third-largest mobile telecoms firm with over 2,5 million subscribers.
Government already controls another mobile phone company, NetOne, which has about 3,3 million subscribers. Telecel Zimbabwe was established in 1998 to operate a mobile phone network.
In addition to its woes with the regulatory authorities members of the EC – Dr Makamba and Dr Mutasa – have been involved in internecine boardroom squabbles.
