Celtel and TTCL part company

22 Aug 2005

Tanzanian fixed line incumbent the Tanzania Telecommunications Company Limited (TTCL) and Celtel Tanzania have legally separated, allowing each to administer its own financial and business operations. The government of Tanzania and Celtel formally signed an agreement allowing the two entities to separate earlier this month. Under the new arrangements, TTCL’s shareholding structure will remain unchanged, with the government of Tanzania holding 65% and Celtel International the remaining 35%. However, Celtel Tanzania’s structure will change following the government’s decision to sell a 25% stake in the cellco to Celtel International for USD28 million. The government has retained a 40% stake in the venture with the remainder going to Celtel International. Celtel’s spin off from TTCL allows it to access a USD25 million loan, which has been arranged by its parent Celtel International.