Etisalat Group has sold its 85 percent stake in Zanzibar Telecom, a telecom operator on the islands of Zanzibar, to Millicom.
Millicom will pay cash consideration of $1 dollar and assume total debt obligations of $74 million. In addition, Zantel will have up to $32 million in net current liabilities. Millicom expects the EBITDA of Zantel to reach $25 million via a combination of bringing new products and services and delivering greater efficiencies.
The Zanzibar Government will continue to own the remaining 15 percent stake in Zantel.
Zantel has gross revenues of $82 million and 1.7 million subscribers across Zanzibar and mainland Tanzania. It operates 2G and 3G services over 545 network sites, with 57MHz of spectrum and has ownership rights to undersea fibre optic cable capacity.
Zantel has an approximate 5 percent share of the Tanzania mobile market. Millicom intends to retain and continue to operate the Zantel brand, while delivering cash flow growth by leveraging technical and operational efficiencies.