THE Zambia Development Agency (ZDA) has started advertising the sale of up to 75 per cent shares in Zamtel in the international media after Cabinet approved the partial privatisation of the company.
The Zambia Development Agency (ZDA) said yesterday in an advertisement in South African financial daily Business Day that prospective bidders were invited to place bids to qualify for the proposed sale of an equity stake in Zamtel.
The pre-qualification criteria to bid for Zamtel includes a minimum of five years of licenced operation in the telecommunications industry, as the entity’s primary activity.
The intending bidders also need to have at least three million subscribers with total assets exceeding the liabilities by at least $250 million.
“A list of prequalified bidders will be announced on or around Wednesday, 21st October 2009. Prequalified bidders will be provided with a process letter detailing the guidelines for the bidding process,” the advertisement reads.
Sources said the ZDA would also allow consortia to bid for the purchase of Zamtel but the lead member of such a group should be from the telecommunications business.
A senior Government official, speaking on condition of anonymity, said the Government would not put a price tag on Zamtel because it might lower the price.
The ZDA said up to 75 per cent of Zamtel would be offered for sale, while the Government would retain a 25 per cent stake, which it might sell at a later stage through an initial public offering on the Lusaka Stock Exchange.
Zamtel is Zambia’s only licensed fixed-line provider of voice and data communications.
Revenue for the year to end-December was $100 million, according to the ZDA.
The Government official defended the sale of 75 per cent of the shares in Zamtel, saying that increased the commitment of any possible investors and gave Zambia the edge in the stake sale bargaining process.
“The buyer always pays a premium when getting a controlling stake in a company. We own 100 per cent of Zamtel now but where are we?” the source said.
“The Government advertised the sale of 20 per cent shares in Zamtel in the 1990s but no investor came up. Zamtel requires money to turn around,” the source said.
The Government considered breaking the firm up but the value of individual Zamtel parts would have been less than if it was sold as an entity.
[Times of Zambia]
this bullshxt is on! God save our Zambia
Finally the will of the Govt has been done. I feel for those who voiced out against the proposed 75% sale of Zamtel shares because, the “listening government” has gone ahead to satisfy it’s stomach desires. It’s rather sad to note that those who’ve been pushing for the sale of the parastatal have deliberately chosen to pay an oblivious ear to many outcries from various stakeholders and the general citizens at large. It therefore goes well to prove that this exercise in no way being done in good faith and this calls for strengthening of the Task FOrce in corruption especially after 2011 so that we may have justice rendered, unlike what is prevailing in the country. Pocketing has really become centre stage, question is; for how long?
Finally Bwezani balyamo VAT
You are right Rewind Bwezani (RB) # 2, yes indeed, for how long are we going to watch self pocketing by politicians? For how long Zambians?
Here we go again floating one of the biggest asset the government has on southafrican market,they have made it to be what it is today because the government does not pay their bills,they take money for campaigns from these same parastals
“A senior Government official, speaking on condition of anonymity, said the Government would not put a price tag on Zamtel because it might lower the price”.
what utter stupidy and bull,is it being floated on katondo or has it got an expiry date,on what grounds would the price be reduced
And what about the countires security wont that be affected. Surely is selling the only option?
Can someone please stop this. Let us demonstrate against this, please ltets do something and stop these selfish politicians. God help us. Its not too late
If ZDA are really serious about selling ZAMTEL to best equity partner, why have they advertised the ZAMTEL sale in SA and not globally through the embassies and High Commission spread out all over the world, if they truly want to get the best deal in terms of technological transfer, equipment mordenisation and technological advancements and skills?
RB’s son has companies registered in SA, some of which were involved in the supply of the GMO maize, just a while ago. What’s the guarantee that these same RB attachments will not circumvent the bidding process and claim to be SA investors ready to buy off ZAMTEL shares?
What is the guarantee that this is not yet another scam to defraud Zambians of Zamtel?
Change Life Zambia, in actuality! We shall never be listened to by these kulu mphuno’s, therefore what is required is change or die Zambia! Sorry bloggers do not attack me, I am short of the right words!
Finally, I was wondering when this was going to take place.
Putting Zamtel in private hands is the one of the best policies out there as it will enhance competition and bring about efficiency in the company. Just look at the success of ZANACO since it went into private hands. The conditions set by the ZDA are good and we hope a good buyer will come up.
Good Job.
Next to sell is Bank Of Zambia and finally land before the end of 2010 ,since 2011 they will be kicked out of office.
Reason why the ZDA has advertised in South Africa for the selling of Zamtel Assets is simple! Can’t u smell underhand methods being applied here like I do? Come one Zedians! You should really anticipate a good buyer out of this, but remember that a country chosen for first advertisement is S.A and that’s where James Banda is based! Are you sure non of u has seen this right from the start?
To be honest country men, selling Zamtel is not the last option to save it from collapse. In the first place, who has greatly contributed to company’s poor performance? Isn’t it the Govt itself because of the unsettled huge debts to the parastatal for phones being recklessly used? One’s gat 2 be serious! Mediocrity has really taken root amongst our politicians while we seat and watch with docility!
I think its better to look at the conditions set out by ZDA, at least they seem to be looking for a genuine telecom operator. So, if politicians are using zamtel to cling to power, isn’t it a good thing that we sell it so that come next election they won’t have any sources of income to manupilate the votes.
Lets wait for the the list of prefferred bidders being announced in October before we make conclusions.
Whatever our sentiments, the owner of Zamtel has said the company cannot survive in current state. Even the trade unions have agreed. They must know what they are talking about.
I await the announcement.
Zamtel cannot survive in it’s current state simply because the ZAMBIAN GOVERNMENT does NOT pay bills to the utility company! And it is the same government which is quick to propose a privitisation! How foolish!
While I agree that Zamtel must be privatised 75% should not go to one individual. At least it should have been a consotium so that we get maximum benefit. Maybe some of the shares floated on the Lusaka stock exchange and other shares taken up by Zedian investors. if suspious investors in SA get advantage, we should protest. Zedians please do remain dormant.
Some of u bloggers see things from a plane surface level, hence your non analytical statements. Ever thought about a poor Zamtel employee’s future once the company is sold? Someone with a family of 8, losing a job just like that. Why can’t our own government think of sourcing 4 money from the donor community to resuscitate Zamtel? Yet we can do that to fund the non progressive NCC! Stop looking @ the outer cover of an object, learn to dig deeper even though the mind of a black man is known for such, live 4 change PPPPpppllllliiiiizzzzzz!1!
U only ve one Zambia, once it’s gone u gonna be destitutes in ur country, mark my words and watch out!
Sad day for Zambia, history will judge this leadership.
By 1991 80% of the economy was state owned. Much of that has since been privatised. We are acquainted with privatisation. If the Govt is unable to run Zamtel, the company will collapse, all jobs will go under. If Zamtel is privatised instead, only some jobs will go, due to over employment. And of course the new privatised company will be more efficient and innovative. We feel for employees but they must unbderstand that their company is just not competitive. If you produce goods or services that no one wants to buy, its only natural that you’ll run out of business. Both the owner of the business and the employees have some blame to shoulder. Customers deserve good value for their money. They sweat for it.
This is a trick.We are selling Zambia using the following catch words
1.Restructure Government Department
2.Corporatisation
3.Privatisation
4.Shares-initially only 49% overseas
5.Shares- increase to over 51% overseas
6.Investors from overseas
Notice now, that without these investors, Zambia will collapse economically as we have been already cleverly conned into the selling up our major assets.
I THINK THAT WE SHOULD ALLOW ZDA (NOT GOVT) DO ITS JOB WELL. PROBLEM IS MOST ZEDIANS DO NOT STILL UNDERSTAND WHAT PRIVATISATION IS ALL ABOUT AS EVIDENCED BY SOME COMMENTS ON THIS BLOG. ZAMTEL NEEDS ATTENTION, AND PRIVATISING IS CURRENTLY THE BEST OPTION AVAILABLE. THE QUESTION IS PROBABLY WHETHER IT SHOULD BE BY 75% OR A BIT LOWER. LETS BE SANE AND SOBER IN OUR REACTION. BY THE WAY THE ADVERTISEMENT IS ALSO IN THE LOCAL MEDIA, AND SO THERE IS NOTHING TO SUGGEST PRESIDENT BANDA OR HIS INTERESTS ARE AMONG THE BIDDERS. ZAMBIANS LETS CROSS THE BRIDGE ONCE THERE. ALLOW PRESIDENT BANDA TO WORK. HOWEVER, I SALUTE YOUR VIGILANCE, AFTER ALL THIS IS WHAT DEMOCRACY ENTAILS, I THINK IT’S WORKING FOR ZAMBIA. I WOULD BE SHOCKED IF THERE WOULD BE NO DIVERGENT VIEWS. THIS IS HEALTHY FOR MOTHER ZAMBIA.
SCRAMBLE FOR ZAMTEL
Whatever the company owes can be repaid within a year if it had all the blessings from government. Now they produce bad pronoucements then sell. All the buyer will do is Launch products. Switch on fible, switch on Cell Z switch on high speed internet on fible and make more money. May the big guys in the industry go for ZAMTEL they wont regret
Its pretty amazing how uniformed some of the comments are above. I am in the UK and I saw the advert in the Financial Times…a global paper..so i am pretty confused about this strange South African conspiracy?! And please guys wats all this fufu on security?! Its a telecom company..very few countries have telecoms owned by government…only india seems to have them…and thats becoz noone wants them. As people of the Zed we seem to remain fundamentally confused on our identity. When our government acts socialist..WE COMPLAIN but when they act in capitalist fashion …WE STILL COMPLAIN. and now some bloggers are asking for donor aid for a parastatal…OMG…unbelievable! but if its in the name of democracy…then better this than nothing.
A LITTLE BIRD TOLD ME ZAMTEL 75% WAS SOLD LONGTIME AGO. THE ADVERTISEMENT IS JUST FORMALITY. ITS OVER.
It is good they are selling Zamtel, because once it is sold the government will actually have to pay for their Phone bills. Next companies on the list to be sold are ZESCO and ZNBC. But the shold be sold in a proper way and not the way Zamtel was handled. Z
Zesco is to big and should be broken up in supply as one company and distribution as another.
I dont know much about ZESCO and ZNBC but Zamtel should go. Im pretty happy about the procedures followed. they follow standard procedure…they same way privatisations have been guided in Europe… wat little birdie mimi? international bidders wouldn’t play along with such a ploy
USA and UK have in essence renationalised the Banks, General Motors, AIG and now the UK’s National Rail. There is even talk of further renationalisations.
WHAT IS THIS ZAMTEL PRIVATISATION NONSENSE. CAN’T WE LEARN FROM DEVELOPED NATIONS?
Zamtel is a vaible Company..Not debatable. Currently there are stacks of boxes at Lamya for NEW Equpt intallation. The CellZ switch can compete with ZAIN & MTN just now. They have a 3G Swtich state of the art. What they dont have are BTS’s. WyMAX Internet connection already installed, NGN national Swtich currently being installed, Ericsson Internation Switch alreday installed, ADSL Rural Internet connection for all ditricts about to start, CDMA Internet/Phone connection expansion, VOIP connection, Fibre running to all 72 districts which will also carry CellZ, Biggest Internet Bandwidth with redundacy. I dont have enough space but point is the NEW INVESTOR will have nothing to invest coz all is there. HE WILL RIP WHERE HE DID NOT SOW. Zamtel has ONLY a Management problem caused by GOVT.