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Tanzania joins other nations to probe manner of Zain's exit

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by BabuK, May 23, 2010.

  1. BabuK

    BabuK JF-Expert Member

    #1
    May 23, 2010
    Joined: Jul 30, 2008
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    The government is slowly and keenly scrutinizing the take over of Zain Tanzania operations by the India's Bharti Airtel.

    A detailed report on what the government should take into account before the formal hand over of the company in which the government owned 40 percent of the shares has been compiled and will be handed to the minister for Finance and Economic Affairs this week.

    The news comes at a time when at least four countries in Africa where Zain had operations have launched investigations into the manner of Zain's exit.

    Minister for Finance and Economic Affairs, Mustafa Mkulo told The Guardian on Sunday on Friday that the government was keen to ensure that it does not lose anything in the process.

    He said: "It is true there are a lot of things to be considered especially now that other countries are complaining of foul play and the fact that the government had shares in Zain," referring this reporter to his personal assistant, Omar Khana, who has been coordinating the talks.

    When reached over the phone on Friday, Khana said the report was ready and would be handed over to the minister any time this week.

    He gave no details citing the fact that he is not the spokesperson, but added that several experts expressed views on the matter, and advised on what should be done. "It is true we have been discussing the matter with experts, but full details will be made public by the minister once he gets the report."

    Meanwhile, Kenya government fears it might lose up to $100 million in taxes, on top of job losses if the full terms of the transfer are not disclosed to the local regulatory authorities before the conclusion of the deal.

    According to media reports, Kenyan Prime Minister Raila Odinga, has constituted a taskforce to look into Zain Kenya operations transfer to the Indian firm to study the details of the transaction.

    Kenya wants to ensure the firm pays capital gains tax, protects workers' jobs and addresses privacy concerns before the full entry of Bharti Airtel after it emerged that all the company's operations would be centralised.

    This could mean that phone calls from any African country will be routed to a base country, a process which may result in cross border infrastructure sharing arrangements, without express approval of the concerned governments. "I can confirm that a team is in place to look at all these issues, before the final word is given on the transfer and a regulatory license is awarded to the new entrant," said the source.

    With the move, Kenya joins several other African countries already investigating the manner of Zain's exit from most of the African market.

    Their fear is that Zain may be "flipping" its African assets to a group of international investors, without any gains to the countries in which it was operating, and making a huge profit in the process.

    Ghana, Zambia, Malawi have formed inter-ministerial teams to scrutinise the assets transfer and accompanying roll out obligations, as well as tax codes, in the hope of claiming a piece of what they see as windfall profits by Zain from the sale.

    Zain bought Celtel International for $3.4 billion in 2005 and expanded into 13 African countries including Tanzania, Kenya and Nigeria.

    However, a couple of months ago, the company signed definitive agreements for the sale of 100 per cent of Zain Africa BV, its African businesses excluding its operations in Morocco and Sudan to Bharti Airtel Limited for an enterprise value of $10.7 billion.

    The transaction implies an equity value of $9 billion and consideration will be fully satisfied in cash, of which $8.3 billion will be paid upon closing and $0.7 billion will be paid one year from closing.

    The deal will also see Bharti Airtel assume $1.7 billion of consolidated debt obligations. Analysts say Zain will earn over $3 billion dollars from the transfer.

    The taskforce will establish Bharti Airtel's local partners, and scrutinise its agreement with financiers, given that some of its operations will be financed through debt.

    The team will seek clarification on Bharti Airtel's central operations model and whether it will lead to staff layoffs.


    SOURCE:
    GUARDIAN ON SUNDAY
     
  2. BabuK

    BabuK JF-Expert Member

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    May 23, 2010
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    Nakumbuka wafanyakazi wa TTCL walilalamika hapo siku za nyuma juu ya mchezo mchafu wa kampuni ya Mobile System International (MSI) iliyonunua TTCL na kuunda CELTEL kwa pesa hizo hizo za kuinunua TTCL, na baadaye ikauzwa kwa Kuwait Mobile Systems ambayo nayo sasa imeuzwa kwa wahindi..

    Kwa kweli pamoja na utandawazi uchunguzi usiishie kwa mnunuzi wa mwisho. Je toka CELTEL kwenda ZAIN nchi haijaingizwa kwenye mkenge? Tunajua kwamba hata ununuzi uliofanywa na MSI ulikuwa na mizengwe na kulalamikiwa sana..Je tuemdelee kuingizwa menge kila badiliko na umiliki wa kampuni iliyobinafsishwa?
     
  3. Semilong

    Semilong JF-Expert Member

    #3
    May 23, 2010
    Joined: Mar 5, 2009
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    kitu kibaya cha hawa waindi wanaweza wakaamishia kazi kibao india na ukipiga simu anapokea muindi halafu anakuambia yeye anaitwa kidude.
    ukiwa UK unaweza ukapiga simu akapokea muindi halafu akakuambia yeye anaitwa SCOT.

    Je bongo itapata kiasi gani as capital gain tax
     
  4. Mpita Njia

    Mpita Njia JF-Expert Member

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    May 23, 2010
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    Yaani deal imekamilika ndo tunaanza kuhoji!
     
  5. BAK

    BAK JF-Expert Member

    #5
    May 24, 2010
    Joined: Feb 11, 2007
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    A detailed report on what the government should take into account before the formal hand over of the company in which the government owned 40 percent of the shares has been compiled and will be handed to the minister for Finance and Economic Affairs this week.

    Minister for Finance and Economic Affairs, Mustafa Mkulo told The Guardian on Sunday on Friday that the government was keen to ensure that it does not lose anything in the process.

    He said: "It is true there are a lot of things to be considered especially now that other countries are complaining of foul play and the fact that the government had shares in Zain," referring this reporter to his personal assistant, Omar Khana, who has been coordinating the talks.

    Meanwhile, Kenya government fears it might lose up to $100 million in taxes, on top of job losses if the full terms of the transfer are not disclosed to the local regulatory authorities before the conclusion of the deal. (Mhhhh! wajinga ndiyo waliwao)

    According to media reports, Kenyan Prime Minister Raila Odinga, has constituted a taskforce to look into Zain Kenya operations transfer to the Indian firm to study the details of the transaction.

    Kenya wants to ensure the firm pays capital gains tax, protects workers' jobs and addresses privacy concerns before the full entry of Bharti Airtel after it emerged that all the company's operations would be centralised.

    This could mean that phone calls from any African country will be routed to a base country, a process which may result in cross border infrastructure sharing arrangements, without express approval of the concerned governments. "I can confirm that a team is in place to look at all these issues, before the final word is given on the transfer and a regulatory license is awarded to the new entrant," said the source.

    With the move, Kenya joins several other African countries already investigating the manner of Zain's exit from most of the African market.

    Their fear is that Zain may be "flipping" its African assets to a group of international investors, without any gains to the countries in which it was operating, and making a huge profit in the process.

    Ghana, Zambia, Malawi have formed inter-ministerial teams to scrutinise the assets transfer and accompanying roll out obligations, as well as tax codes, in the hope of claiming a piece of what they see as windfall profits by Zain from the sale.

    Zain bought Celtel International for $3.4 billion in 2005 and expanded into 13 African countries including Tanzania, Kenya and Nigeria.

    However, a couple of months ago, the company signed definitive agreements for the sale of 100 per cent of Zain Africa BV, its African businesses excluding its operations in Morocco and Sudan to Bharti Airtel Limited for an enterprise value of $10.7 billion.

    The transaction implies an equity value of $9 billion and consideration will be fully satisfied in cash, of which $8.3 billion will be paid upon closing and $0.7 billion will be paid one year from closing.

    The team will seek clarification on Bharti Airtel's central operations model and whether it will lead to staff layoffs.


    SOURCE:
    GUARDIAN ON SUNDAY
     
  6. Nyambala

    Nyambala JF-Expert Member

    #6
    May 24, 2010
    Joined: Oct 10, 2007
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    Hivi huu uchunguzi ulitakiwe ufanyike kabla au baada? Na je kama Zain Tanzania serikali ilikuwa na 40% of shares inawezekanaje kuwa walikuwa hawajui kwamba kampuni iko mbioni kuuzwa hivyo kuanza mara moja mchakato wa kutambua how affected we were going to be.

    Kwa namna serikali yetu inavyo-operate the answer is just simple, kwamba hamuoni hata nchi zingine zinafanya uchunguzi sasa?
     
  7. Utingo

    Utingo JF-Expert Member

    #7
    May 25, 2010
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    ZAIN inapaswa kutaifishwa. Ni mali ya TTCL. period
     
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