More than eight foreign companies and consortia’s have shown interest in acquiring 75 percent of Zamtel shares.
Zambia Development Agency (ZDA) Director General Andrew Chipwende says the response from potentials buyers of the government owned Telecommunication Company was overwhelming with more than 30 companies expressing interest.
Mr. Chipwende, however, says the Agency only settled for eight companies who prequalified to participate in the privatizing process.
He explained at a media briefing in Lusaka today, that the eight companies and consortia’s met the set criteria of having more than three million subscribers and an operational license of not less than five years.
He named the companies as Vimpelcom of Russia, Bharat Sanchar Nigam limited of India, LAP Greencom of Libya, Mahanagar Telephone of India and Portugal Telecom of Portugal.
Others are Telkom limited of South Africa, Orascom Telecoms holdings of Egypt and UNITEL of Angola.
Mr. Chipwende said the eight companies have already paid the US$20,000 million as prequalifying fee.
He also noted that Zamtel needs a suitable strategic partner that will effectively take over its operations.
Mr. Chipwende said this is why the listed companies will be issued with processing letters, confidential information and memorandums that will best describe the current set up and operations of the firm.[quote]
Meanwhile the ZDA chief said that in order to enhance transparency and total confidentiality, the Agency has established a secure virtual data room which will allow the prequalified participants chance to examine all key Zamtel documents remotely and make site visits to key facilities.
He stated that companies will also be invited to participate in the due diligence process set for Monday 2nd November 2009 after which they would be asked to submit a bid of 51 % and 75% of the equity in Zamtel based on their own evaluation of the company and market opportunities.
Mr. Chipwende further added that after this process ZDA would on 11th January 2010 announce the short listed bids adding that successful companies or consortia’s will be invited to take part in selection process of the final company that will take the 75 % shares of Zamtel.
In September this year, ZDA in conjunction with RP capital advisors invited prospective bidders to submit applications for pre-qualification to participate in the proposed partial privatization of Zamtel.
ZANIS