The Ethiopian government is inviting international investors to express interest in its telecommunications company, Ethio-Telecom. According to a statement issued by the ministry of finance, Ethiopia is now ready to release an Expression of Interest for the sale of 40% of shares in the state-owned telecommunications company.
Deloitte, the lead transaction advisor, is in the last stages of the preparatory work which includes a business plan, business valuation, and financial, legal, and tax due diligence.
Ethiopia will issue the Expression of Interest (EOI) on Tuesday 15th June 2021 to allow foreign investors to declare their interest in one of the largest mobile operators in Africa. Interested parties will have 30 days to respond with an expression of interest in company.
Ethio-telecom serves close to 53 million subscribers and had been the only mobile service provider in Ethiopia until May this year when the Communications Authority issued a license to East Africa’s largest mobile operator, Safaricom. The license allows Safaricom to provide voice and data services in the country.
Bloomberg reports that the Ethiopian government will retain 55% ownership in Ethio-telecom and 5% will be issued to Ethiopian investors probably through an Initial Public Offer.