Econet Wireless plans to acquire African assets from Millicom Group

Econet Wireless plans to acquire African assets from Millicom Group

The Zimbabwean telecom group Econet Wireless, founded by Zimbabwean businessman Strive Masiyiwa, is currently engaged in negotiations with the telecom group Millicom International Cellular (MIC). These discussions concern the acquisition of certain African assets of the Luxembourg company, revealed to Bloomberg , a source close to the file.

As is currently the case in Senegal, where it sells its subsidiary Tigo to the consortium formed by the group Teyliom, the company NJJ, and Sofima Axian, the group Millicom could, if the exchanges succeed, separate from one or all its African subsidiaries.

With the exception of Senegal, the company is present in Tanzania, Chad, Ghana and Rwanda under its brand name Tigo. Since 2016, it has embarked on an extensive program of gradual withdrawal from the continent, deemed less and less profitable and subject to increasingly crushing competition. The group has decided to focus on the Latin American market, rich in opportunities and where ”  business is much more profitable  “.

In 2016, Millicom recorded 57,411,000 customers for 6.249 billion US dollars of revenue. The group’s five African subsidiaries, which accounted for 25,407,000 subscribers, accounted for US $ 896 million in group revenue, while the eight Latin American markets contributed US $ 5.352 billion.

Source: Agence Ecofin