Zimbabwe’s state run pension fund, National Social Security Authority (NSSA) says it is in talks to restructure its deal with Zarnet which will see the government-owned Internet Service Provider buy back mobile operator Telecel over a three-year period.
Last year NSSA, the biggest institutional investor in the country with interests in 53 of the 59 companies listed on the Zimbabwe Stock Exchange, paid out $30 million on behalf of Zarnet to buy Vimpelcom’s 60 percent shareholding in Telecel Zimbabwe.
Under the arrangement, NSSA would retain equity control of Telecel Zimbabwe.
“The two parties are in advanced negotiations in relation to restructuring the transaction; wherein from a NSSA perspective it will culminate in an acceptable equity return and enhanced security arrangements, whilst the ZARNet perspective translates to a feasible and favourable financing structure,” Vela said in a quarterly update yesteday.
“The effect of the new dispensation is that ZARNet will exercise the buy-back over a 3 year period on terms enshrined in a new agreement involving a number of related-parties to ZARNet.”
ZARnet’s Telecel buyout was finally concluded in November last year for $40 million.
Telecel’s remaining 40 percent is owned by Empowerment Corporation, a group of local shareholders.-The Source
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