Saturday, June 13, 2009

Mozambique Plans to Partially Privatize mCel

Mozambique will partially privatize state-owned mobile operator mCel.
The government will initially sell a minimum stake of 5 percent in
mCel, Paulo Zucula, minister of transport and communications told
independent newspaper O Pais.

According to Zucula, the initial stake will be exclusively available
to Mozambique investors, but subsequent stake sales will be open to
international buyers as well. mCel is currently developing a sale
proposal, which will be submitted for government approval within a

The proposal will include the price per share, the amount of the stake
to be sold, as well as details on the sale procedure. mCel reported
around 2.3 million customers at end-2007, and a net profit of around
USD 13.2 million.

The privatization of mCel was scheduled for roll-out in 2008, however,
the process was delayed due to organizational problems, Zucula added.
The minister also said the government aims to boost mobile
communications in Mozambique, and gradually withdraw from the market.

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