United Arab Emirates telecom operator, Etisalat, has agreed to sell its 85 per cent stake in Zanzibar Telecom Limited (Zantel) to Sweden’s Millicom, it said on Friday.
In a statement in Abu Dhabi, Etisalat said Zantel will have up to $32 million in net current liabilities at close of the deal.
According to the deal, Millicom will assume total debt obligations of $74 million under the terms of the agreement.
The deal is still subject to regulatory approval by the Tanzanian Communication Regulatory Authority.
Zantel needs the deal against larger rivals Vodacom and Bharti Airtel.
Like in other African countries, mobile phone use has rocketed in Tanzania in the past decade.
Other operators include Vodacom Tanzania, a unit of South Africa’s Vodacom; India’s Bharti Airtel; Tigo and a unit of Sweden’s Millicom.
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