Millicom has signed am settlement to accumulate an eighty five% stake in Zanzibar Telecom (Zantel) from Etisalat Group for only one greenback.
Zantel is the main cell telecom operator on the islands of Zanzibar with 2014 gross revenues of $eighty two million and 1.7 million subscribers throughout Zanzibar and mainland Tanzania.
Millicom mentioned that it intends to retain and proceed to function the Zantel model, whereas delivering money stream progress by leveraging technical and operational efficiencies.
Underneath the phrases of the settlement Millicom pays the overall money consideration of $1 greenback and assume whole debt obligations of $seventy four million. As well as Zantel may have as much as $32 million in internet present liabilities at closing. Millicom expects the EBITDA of Zantel to achieve $25 million by means of a mixture of bringing new services and products to the prevailing buyer base and delivering better efficiencies. The settlement permits for an adjustment to the overall consideration if that focus on isn’t reached by the tip of 2019.
Millicom has organized with a number one worldwide financial institution, the supply of a $a hundred million 5-yr credit score facility for Zantel.
The Authorities of Zanzibar will proceed to personal the remaining 15% of the shares in Zantel.