Following regulatory approval, Millicom has completed the acquisition of an 85% stake in Zanzibar Telecom (Zantel).
Zantel is the leading mobile telecom operator on the island of Zanzibar with gross revenues in 2014 of $82 million. It operates 2G and 3G services over 545 network sites and has ownership rights to undersea fibre optic cable capacity. Zantel has an approximate 5% share of the Tanzanian mobile market.
Cynthia Gordon, Chief Executive Officer of Millicom Africa Division said: “Millicom will work alongside the Government of Zanzibar to create a strong and revitalized Zantel bringing new benefits to the people of Zanzibar such as improved customer experience on voice, data and mobile financial services.”
Millicom’s transaction involved repaying Zantel’s outstanding debt at closing. This was achieved through a new loan supported by Standard Chartered Bank and The Swedish Export Credit Corporation.
The Government of Zanzibar has retained its 15% stake in the company.