(Ecofin Agency) - It is finally the Nigerian company Teleology Holdings that Uganda government trusted for the majority stakes in Uganda Telecom (UTL).
The company which was competing since May 2018 with five others agreed to increase its initial bid of $60.5 million for 67% stakes to $70.8 million.
In July 2018, the Economist Intelligence Unit of Uganda was presenting Mauritius Telecom as the best bidder with its offer of $45 million for 69% stakes.
As the major stakeholder in UTL, Teleology Holdings will receive fiscal exemption. It will also use the frequency spectrum of the incumbent operator and be in charge of the management of the national optical fiber infrastructure for 20 years.
To enjoy those benefits, Teleology Holdings will have to pay a non-refundable amount representing 10% ($7 million) of the agreed amount by the end of November 2018 and pay the rest by January 2019 to conclude the acquisition. Uganda indicates that it reserves the right to cancel the operation and launch a new operation to seek partners if Teleology Holdings does not comply with the financial terms.
Teleology Holdings’ entrance in Uganda looks like an extension of its activities in Africa. The company entered Nigeria by acquiring 9Mobile, ex-Etisalat Nigeria, for $251 million.