Tanzanian Government Retains 40% Stake in Zain

Tanzanian Government Retains 40% Stake in Zain, Receives USD11m from
New Owner

The government of Tanzania is set to receive TZS15.4 billion (USD11.2
million) and to hold on to its 40% stake in fixed and mobile operator
Zain Tanzania following the sale of the telco to India's Bharti
Airtel. Last month the Indians finalised the acquisition of the African
assets of Kuwait-based Zain Group, with the deal valued at USD10.7
billion. Under the terms of the deal, first announced in March 2010,
Bharti will pay USD8.3 billion upfront, followed by a further cash
payment of USD700 million after one year, while it will also take over
approximately USD1.7 billion of Zain's debt.

Local newspaper The Citizen now reports that the country's minister for
Higher Education, Science and Technology, Prof Peter Msolla, told the
National Assembly that the government is still in talks with Bharti
Airtel concerning the sale. In a debate on the country''s budget
for the 2010/11 financial year, Msolla said: `We met with the
company's officials on 21 June to discuss the sale… We have
told them to finalise the evaluation of the assets so that we can
determine whether the payment made to us is satisfactory. ' The
minister went on to add: `Since the government has shares in the
company, it is imperative that it be involved in transactions regarding
the sale. The shares we hold in the company are assets that ensure our
role is not underestimated. '

(Source: Telegeography)