Conclusion Of The Privatisation Of Tanzania Telecommunications Company

23 February 2004
Content from a Premium Partner
Celtel (Amsterdam)
press release

Amsterdam — Celtel International (previously known as MSI Cellular) and the Government of Tanzania have concluded the privatisation of the Tanzania Telecommunications Company (TTCL).

Celtel International, in partnership with Detecon of Germany, invested an initial $60 million in TTCL in February 2001 for a 35% shareholding in TTCL. A second payment was dependent on the financial performance of TTCL for the year 2000. After disagreeing on the year-end 2000 accounts, both the Government and Celtel International agreed to be bound by independent "Expert Determination".

Mr John Ellison, a Partner in KPMG LLP of London, was appointed by both parties in 2003 as the independent expert to determine issues where the Government and Celtel International differed insofar as TTCL's year 2000 accounts were concerned. His report was sent to both parties on 29 January 2004 and is the basis of the agreement reached today.

Based on this "Expert Determination", it has been agreed that Celtel International will make an additional $4.96 million payment. In addition, Celtel International will pay accrued interest of $321,000.

Speaking at a press conference in Dar es Salaam, Tanzania, The Chief Secretary in the President's Office, Mr Marten Lumbanga said now that the second tranche issue had been resolved, it was time for both parties to work together in rebuilding TTCL and recover the time lost in addressing the year 2000 accounts dispute.

Sir Alan Rudge, Celtel International's President and Chairperson of the TTCL board of directors, said in Dar es Salaam:

"We welcome the resolution of this matter and look forward to working together in building TTCL into an institution that will be a model for the region and a source of national pride."

Celtel International Tel: + 31 23 554 23 90 Omari Issa, Chief Operating Officer

Exchange rate used is Tshillings 1,100 to the USD

Note to Editors

Celtel International is Africa's leading communications operation, with mobile networks in 12 countries - more than any other operator. Some 2.5 million users are connected to Celtel, a number which is growing at over 50% per annum.

Celtel operates in Burkina Faso, Chad, Democratic Republic of Congo, Gabon, Malawi, Niger, the Republic of Congo, Sierra Leone, Tanzania, Uganda and Zambia. Celtel is a major shareholder in mobile network operator, Mobitel (Sudan), and was a founding shareholder and minority partner in Vodafone Egypt. It is involved in major fixed-line operations in Tanzania and Sudan.

The Celtel International company, previously known as MSI Cellular, is Amsterdam-based. It took control of its cellular licence in 1998 and since then has gone from strength to strength, winning licences from 13 African governments to invest, build and operate in mobile communications. .

Celtel has been a lead investor across Africa as governments and regulators have liberalised their respective telecommunications industries. Over the past five years Celtel has invested over US$750 million to build the business.

Celtel's focus is on developing wide coverage and quality connections. The Celtel brand is synonymous with upbeat, vibrant, symbolic and celebratory of the richness and vitality of the diverse African people. Celtel networks tend to reach a higher proportion of the population than other networks, including remote rural areas.

Shareholders in Celtel include:

- CDC Capital Partners, a leading risk capital investor in emerging markets, with over US$1.5 billion invested in some 50 emerging countries.

- IFC (International Finance Corporation) the private sector arm of the World Bank and the largest source of private equity for developing countries.

- AIG Infrastructure Fund, sponsored by AIG and managed by EMP, the largest private equity infrastructure manager in emerging markets with nearly US$5 billion under management.

- Zephyr Asset Management, the US based emerging market fund.

- Citigroup, the global financial services group.

- Bessemer Venture Partners, the investment arm of one of the oldest funds in the USA.

- Palio, the Swiss technology investment company.

- FMO, the Dutch development institution and DEG, the German development institution.

- Old Mutual Asset Management in South Africa

- Capital International, Inc., the major US investment group.

Tagged:
Copyright © 2004 Celtel. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 500 reports a day from more than 100 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.