LapGreen concludes Rwandatel purchase

29 Oct 2007

The Libyan government firm LapGreen Networks has signed the final agreement for its USD100 million purchase of 80% of Rwandatel from the Rwandan government. The other 20% stake remains with the Social Security Fund of Rwanda. A Rwandan government spokesman said the agreement had been carefully prepared to avoid a repeat of the 2003 Terracom take-over which ended with a buy-back earlier this year by the government of the 99% stake that American firm Terracom had acquired. Terracom was said to have completely failed to fulfill essential contractual obligations and Rwandatel was repossessed for USD12 million dollars. The Libyan firm promises to invest USD317 million over 15 years to improve telecoms in Rwanda, including USD87 million over the first year. Previous reports have indicated that the Libyans had bid and won just 70% of Rwandatel, but it later emerged that LapGreen had in fact bought 80% for the same amount.

Rwanda, LAP Green Network, Rwandatel