We recently reported about the governments UTL revamping strategy and the first of all possible routes was sourcing for competent investors, then came extension of UTL’s license for 20 more years, UCC expanding UTL’s spectrum and unlimited use of the National Backbone Infrastructure.
Now Daily Monitor reports about the first possible route, that being sourcing for competent investors and apparently government has up to May 26th to find a suitable investor and so far strong bids have come from more than five companies that are willing to swallow up the troubled telecom.
Major ones are Afrinet Communications, Mauritius Telecom plus Hamilton Telecom, Telecel Global, Baylis Consortium and Teleology whom Daily Monitor reports as also being strong contenders.
Surprisingly of all the listed strong contenders, non is Ugandan and once again UTL might land in hands of foreign investors as were the case with Libya’s LAP Green Services that pulled out of UTL after trouble kept piling up. It had a majority stake of 61% while the government had just 39%. We assume whoever governments agrees to will take up the 61% Equity or less. Here is what you need to know about each one of them
Afrinet Communications
Afrinet Communications is a Kenyan based tech company offering services including telecommunication services but allegedly it has close ties with Kenya’s biggest Telco, Safaricom.
In case this is true, it could be Safaricom’s entry into the Ugandan market after several rumoured failed attempts to enter Uganda where it has to battle with the likes of MTN and Airtel Uganda.
Mauritius Telecom
Just like the name sounds, this is a telecommunications service provider based in Mauritius and was formed after a merger of the original Mauritius Telecommunication Services and Overseas Telecommunication services to form Mauritius Telecom. It counts Orange SA as a majority stakeholder with a 40% stake. Could this still be Orange’s re-entry into Uganda’s market? That will be a question for another day.
Hamilton Telecom
Hamilton Telecom has long been rumored as wanting to buy UTL but so far all efforts have been futile. Hamilton Telecom is a US based diversified communications and technology service provider and its Ugandan affiliate actually applied for a Public Service Provider (PSP) licence from UCC.
Telecel Global
Telecel Global is an international telecommunications firm headquartered in Beirut, Lebanon with extension offices in South Africa, the UK and Dominican Republic.
Teleology
Officially Teleology Holdings, is a private Equity firm led by a former MTN Nigeria Executive called Adrian Wood. It has no official website but its listed as an assets management firm listed in Nigeria and it recently put up a strong bid for Etisalat Nigeria whose debt shot through the roof. It finally won the bid and the new company now trades as 9 Mobile.
