Bloomberg News

Zamtel Sale to Libya’s LAP Was at ‘Best’ Price, Adviser Says

November 29, 2011

Nov. 28 (Bloomberg) -- The company that advised Zambia’s government on the sale of 75 percent of Zambia Telecommunication Co. said LAP Green Network of Libya made all payments needed when it bought stake in the company last year.

LAP Green paid $257 million and assumed more than $70 million of guarantees to Zamtel’s suppliers, London-based RP Capital Advisors Ltd. said in an e-mailed statement yesterday.

“The price achieved for a controlling stake in the company was one of the very best among privatizations of telecommunication assets on the African continent,” it said.

Zambian Justice Minister Sebastian Zulu, who led an investigation into the transaction, on Nov. 24 said the sale of the stake was “a fraud,” adding the previous government acted with “extreme haste and did not follow normal tender procedures and renders the transaction illegal. LAP Green bought a 75 percent stake in Zamtel in June last year.

President Michael Sata, who has embarked on an anti- corruption campaign, said on Nov. 17 he would reverse the sale if Cabinet recommended this.

Lap Green has invested $170 million in its network in the southern African nation, it said in a statement published in Zambia Daily Mail today.

--Editors: Ana Monteiro, Shanthy Nambiar

To contact the reporter on this story: Anthony Mukwita in Lusaka via Johannesburg at gbell16@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net


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