Chiyangwa wades into Telecel shares saga

HARARE - Flamboyant businessman Phillip Chiyangwa  has said 60 percent of shares in Telecel Zimbabwe (Private) Limited (Telecel), owned by Amsterdam-based Vimpelcom, must be sold to local Zimbabweans.

In a letter written to Indigenisation minister Christopher Mushowe and Supa Mandiwanzira, the Information Communication Technology minister, Chiyangwa said his company, Native Telecoms, was willing to buy out both local and foreign shareholders in Telecel.

“At the time of acquiring the licence, government aimed at empowering local blacks and such ideals will be jeopardised if you do not intervene to cause cancellation of the intended illegal sale and cause parties to resolve issues pertaining to equity in Telecel Zimbabwe’s Empowerment Corporation (Private) Limited,” he said.

The Affirmative Action Group founder urged the ministers to intervene in the matter, arguing that his company had the wherewithal to buy out any disgruntled shareholders.

“The wealth of the country must be enjoyed by the people of this country, foreign investors come and exploit the wealth of the country with more advanced technological means that we have in Zimbabwe to siphon off the profits which rightfully belong here, and these go to profit societies other than our own societies,” he said.

This comes after Vimpelcom has since 2013 indicated its desire to off-load its Zimbabwean subsidiary.  

However, Vimpelcom has been facing difficulties in divesting its third sub-Saharan asset — Telecel — as frictions and complexities with the government and local shareholders have impeded any process thus far.

As previously reported by the Daily News last month, the Zimbabwean second largest mobile operator was told that it must adhere to regulations governing foreign ownership or face losing its wireless concession.

The company is currently 60 percent-owned by Telecel International, a unit of Orascom of Egypt, which is itself owned by Vimpelcom Group. The law states that 60 percent of the company’s shares must be locally owned.

The other 40 percent is owned by Empowerment Corporation (EC) — a consortium of local business people.

The latest development comes after investment group Brainworks recently announced its intention to buy EC’s 40 percent shareholding in Telecel for $20 million.

Comments (8)

Native Telecoms......kkkkkkkkkkk jahahahahahhhaaha ehhehehehehe hhuhuhuhuhuhhu hohohohho kkkkkk

Analyst - 13 February 2015

If Phidza is serious (and have the US$) he should just approach Vimpelcom with an expression of interest. Simple. Why approach government? I feel he wants to use politics to armtwist Vimpelcom into an uneconomic deal. Haana mari bharanzi uyu. What a shameless abuse of Indigenisation legislation. Native Telecoms....kkkkkk....Ndaseka hangu

Analyst - 13 February 2015

If Phidza has the money as he says, let him apply for a licence tione....

Yenzile - 13 February 2015

AnaChiyangwa kupusa. The technical world is extremely racist. You won't achieve anything if you muscle-out non-böacks everywhere. Why not learn from chinese? Or are they teaching you things they won't do in their countries??

selele - 13 February 2015

chiyangwa akupengeswa nema ARV KIKIKIKIKkikikikikiki hahahaha hehehehrhhihihihihuhuhuhuhuhkikikikiki

Harare - 13 February 2015

I agree with Analyst. Why approach ministers instead of approaching Vimplecom? If the governmant wants the Telecel destroyed they should go ahead and support Chiyangwa's take over. Evidence on how he has destroyed once prosperous companies is there for all to see.

Beta Dhliwayo - 14 February 2015

Remember G&D shoes company which was taken by PC, its now history, workers in the said company were sent home with nothing. Kkkkkk Pasipamire was a brighter and had a vision than you PC. Go hang

shishito - 14 February 2015

OMW and you wonder why the economy is in a mess !!! OMW Affirmative action was created for minorities as Philip was embarrassed with hearing, LIVE on ZBC, with USA (negro) ambassador from the originating founding movement back in mid-90's. effectively, Zim, has no idea how to invoke a climate of investment. So long as this childlike situation exists – then so will the economy continue where it's going, down. It is now past-joke status how this country operates. Zuma with a great nation continues to now follow similar principles akin to Chavez neo political ideology – of course poor people want a way out – if not extravagant “prophets' as a last resort, then the paltry excuse, that whites from 1979 !!! are to blame for the ills of this quagmire, half way through the 4th decade of independence. No board-game creator, could come up with the delusions and extrapolations – that this country manufactures and sells to its wonderful people, seemingly – unchallenged And I end, OMW - !!!

007 - 14 February 2015

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