Millicom is to buy 85% of Zanzibar telecom (Zantel) from Etisalat. Millicom is buying Zantel for $1 and assuming debt obligations of $74 million. Zantel will also have up to $32 million in net current liabilities at the time of closing.
Zantel is the leading mobile telecom operator on the islands of Zanzibar”, with 2014 gross revenue of $82 million and 1.7 million subscribers on the islands and mainland Tanzania.
Millicom already operates in Tanzania under the name Tigo. With the acquisition of majority shares in Zantel, Millicom will have a greater market share than second placed Bharti Airtel and enable it compete with first placed, Vodacom
Millicom intends to continue with the Zantel brand, “while delivering cash flow growth by leveraging technical and operational efficiencies”.
The deal is still subject to regulatory approval by the Tanzanian Communication Regulatory Authority.
Millicom is a fast-growing media and telecommunications company with more than 56 million customers and operating uniquely in Africa and Latin America.
