BULAWAYO - The country's second largest cellular phone operator, Telecel Global, is exploring various ways to reduce its shareholding in Telecel Zimbabwe, in compliance with the Indigenisation and Empowerment Act. Telecel Global holds about 60 per cent of Telecel Zimbabwe.
In a statement, Telecel Global chief executive, Kai Uebach, said he had met officials from the Postal and Regulatory Authority of Zimbabwe (Potraz) to assure them that the company would comply with regulations.
There were various considerations to be made before the company could reduce its stake in the local subsidiary. In partnerships between local and international companies, it was the international company which often secured the funds for expansion. Telecel Global secured most of the funds for Telecel Zimbabwe’s growth, he said.
Uebach said the option should still enable Telecel Zimbabwe to continue to develop. He said the Empowerment Corporation, the local shareholder in Telecel Zimbabwe, had pre-emptive rights and would be given the first option to purchase Telecel Globals shares, earmarked for disposal at the market rate.
The company has invested heavily in stabilising the network, with the installation of generators and batteries at base stations to ensure service during power outages.
Telecel is in the process of rolling out 170 base stations throughout the country.
Post published in: Economy