Millicom, the telecom and media company headquartered in Luxembourg, today announced the regulatory approval of its 85% stake acquisition in Zantel, the leading mobile telecom operator on the island of Zanzibar.
Zantel reported gross revenues last year of $82 million, with an approximate 5% share of the Tanzanian mobile market. The company operates 2G and 3G services over 545 network sites and has ownership rates to undersea fibre optic cable capacity.
"Millicom will work alongside the Government of Zanzibar to create a strong and revitalised Zantel bringing new benefits to the people of Zanzibar such as improved customer experience on voice, data and mobile financial services," commented Cynthia Gordon, Chief Executive Officer of Millicom's Africa Division.
The transaction involved repaying Zantel's outstanding debt at closing, attained through a new loan supported by Standard Chartered Bank and The Swedish Export Credit Corporation.
The Government of Zanzibar has retained a 15% stake in the company following the agreement.
