More Africa NewsAngola Telecom to retake Movicel stake

July 1, 2021by myles0

State-owned fixed line operator Angola Telecom (AT) will retake the 18% stake in cellco Movicel which it sold at the end of 2019, reports Expansao. Movicel owes significant debts to AT, which has threatened to cut off interconnection with the mobile operator, and the proposed share deal forms part of a planned solution to the company’s financial problems, with several international carriers having already ceased providing services to Movicel due to unpaid dues.

Movicel requires a short-term capital injection of around USD100 million-USD150 million, including an ‘urgent’ requirement for USD40 million, according to Expansao. The government reportedly plans to take an indirect 57% share of Movicel through four companies, including two existing stakes held by Angola’s social security institution, Instituto Nacional da Segurança Social (INSS, 25%) and National Post & Telegraph of Angola (Empresa Nacional de Correios e Telegrafos de Angola, ENCTA, 2%), alongside AT (proposed 18%) and AT’s satellite subsidiary Infrasat (proposed 12%).

Source: Commsupdate

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