The Tanzanian government is working towards completing its acquisition of Bharti Airtel’s 35% stake in national PTO Tanzania Telecommunication Company Limited (TTCL), Reuters reports. The source cites January Makamba, Deputy Minister for Communication, Science and Technology, who informed parliament this week (26 May): ‘Legal procedures are now being finalised for the government to buy back Airtel’s shares in TTCL and regain sole ownership of the company.’ Valued at around TZS14.6 billion (USD6.9 million), the acquisition will supplement the state’s existing 65% stake in the telco, giving it full control. Makamba hopes the deal will ‘rescue the company’.
As previously reported by TeleGeography’s CommsUpdate, in November 2014 Bharti Airtel rejected a TZS5 billion offer from the government, with the Indian firm said to be holding out for TZS21.5 billion at that time. However, Bharti went on to modify its demands, and agreed to sell its stake in February this year.
Tanzania,Bharti Airtel, Tanzania Telecommunication Company Ltd (TTCL), Corporate/Financial, Mergers/Acquisitions