Etisalat to sell Zantel stake
Etisalat is to sell its 85% stake in Tanzania’s Zanzibar Telecom (Zantel) to Swedish telco Millicom.
Terms of the deal state that that Millicom will pay the total cash consideration of $1 and assume total debt obligations of $74 million.
Etisalat was allegedly considering the sale of its Zantel stake in October last year, and Zantel will have up to $32 million in net current liabilities at close of this year’s deal.
Millicom expects Zantel’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) to hit $25 million through a combination of additional products and services, as well as greater service efficiencies.
The agreement allows for an adjustment if that target is not reached by Q4 2019, and is still subject to regulatory approval by the Tanzanian Communication Regulatory Authority.