The government of Papua New Guinea has abandoned the sale of 51% of Telikom PNG to Econet Wireless Group (EWG), but Econet has yet to be informed.
Econet was to acquire the stake in the state-owned network operator for $46 million.
Allied Technolgies (Altech) earlier this year entered into a joint venture with EWG in relation to various telecommunication assets, of which Telikom PNG was one.
However, Papua New Guinea Prime Minister Sir Michael Somare says in a press release that his country`s National Executive Council has decided not to proceed with the deal, wlthough the process of selling Telikom will be revisited next year.
"Given the debate from various sectors of the community and the parliamentary resolution not to proceed with the sale under its current structure, the Cabinet has decided that the most logical step is to cancel current attempts to sell this important state asset," he says.
The government will re-examine its options, including the possibility of calling for fresh tenders next year.
EWG`s CEO, Strive Masiyiwa, says he has read media reports about the cancellation of the deal. However, his company has not received any formal communication from the government of Papua New Guinea.
"We will issue a formal statement only after formal communication is received and after we have had time to consider the alternate options which we understand the PNG government would like to present to EWG," he adds.
Altech says it is also not aware of any formal communication from the government, but adds that "Altech will investigate this matter and revert to shareholders in due course".
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