Four bidders are now left in the race to buy out 75% of the Zambian government-owned telco, Zamtel.
Yesterday afternoon, the Zambia Development Agency (ZDA) revealed that India's Bharat Sanchar Nigam; Libya's LAP Greencom or LAP Green Networks; Unitel, from Angola; and Altimo Holdings, of Russia, will enter into the second round of bidding for the telecoms operator.
Acting director-general of the agency Muhabi Lungu says he is happy with all four participants that have gone through to the next stage of the process. “The bids submitted were compelling, and set the stage for an exciting next phase,” he adds.
The process started out with eight potential bidders, including SA's Telkom. However, four players, including Telkom, decided not to bid for 75% of the company.
India's state-owned telco, Mahanagar Telephone Nigam, Portugal Telecom and a consortium of Egypt-based Orascom Telecom and its subsidiary Telecel Globe joined Telkom in the decision not to go ahead with an offer for Zamtel.
The ZDA says the four bidders will now be invited to participate in the next round of bidding, which is expected to begin next week.
The suitors chasing a stake in the business could be taking a significant risk, since the country's opposition party, the Patriotic Front (PF), has indicated that if it wins an election in Zambia, it intends to renationalise the telecoms company.
The party's president, Michael Satam, says the decision to privatise the company is not in the best interest of Zambia.
"Those bidding for Zamtel are doing so at owner's risk. The PF in government will reverse the decision to privatise Zamtel. Even if it is sold we will renationalise it," Satam told Reuters in an interview last year.
It is likely Telkom considered the possibility of losing the investment and decided to not to put an offer on the table.
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