Etisalat to sell stake in Tanzania's Zantel to Millicom

08:32 - 05 June 2015

A man walks past a sign at the headquarters of telecommunications company Etisalat in Dubai October 25, 2011. REUTERS/Jumana El Heloueh

Zantel, which has struggled against larger rivals Vodacom and Bharti Airtel, will have up to $32 million in net current liabilities at close of the deal, Etisalat said in an emailed statement.

United Arab Emirates telecom operator Etisalat has agreed to sell its 85 percent stake in Zanzibar Telecom Limited (Zantel) to Sweden'sMillicom, it said on Friday.

Etisalat will receive $1 in cash and Millicom will assume total debt obligations of $74 million under the terms of the agreement which is still subject to regulatory approval by the Tanzanian Communication Regulatory Authority.

Like in other African countries, mobile phone use has rocketed in Tanzania in the past decade.

Operators include Vodacom Tanzania, a unit of South Africa's Vodacom; India's Bharti Airtel; Tigo, a unit of Sweden's Millicom; and Zantel.